๐ธ๐ฆ Saudi Exchange Launches New Instrument to Trade Global Shares Locally
The Saudi Exchange (Tadawul) has introduced a new financial instrument called Saudi Depositary Receipts (SDRs), allowing investors in Saudi Arabia to trade foreign-listed stocks directly on the local exchange in Saudi riyals.
๐งพ What Are SDRs?
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Saudi Depositary Receipts (SDRs) are certificates that represent shares of international companies.
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These are traded locally on Tadawul just like any Saudi-listed stock.
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Each SDR is backed by an actual share of a foreign company held by a custodian.
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Investors can buy and sell SDRs in riyals, without dealing with foreign exchanges or currencies.
๐ฏ Why This Matters
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Easier Access to Global Companies
Saudi investors can now diversify their portfolios with exposure to international brands and sectors (like tech, healthcare, or energy), without leaving the domestic market. -
Foreign Companies Gain Visibility in Saudi Arabia
Global firms can now reach local investors more easily, potentially boosting their international shareholder base. -
Supports Saudi Arabia’s Vision 2030
This move strengthens Tadawul’s role as a regional financial hub and aligns with the country’s goal to modernize and internationalize its financial markets.
๐ Benefits for Investors
| Benefit | Description |
|---|---|
| No currency risk | Trades settled in Saudi riyals |
| No foreign account needed | Investors can use existing local brokerage accounts |
| More diversification | Exposure to global growth sectors |
| Regulated locally | SDRs are subject to Saudi financial regulations |
๐ Future Outlook
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The launch of SDRs complements other reforms in the Saudi capital market, such as the introduction of derivatives and enhanced market-making rules.
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This may attract both domestic and international investors seeking flexibility and wider investment options.
In short:
The SDR initiative is a game-changer for Saudi Arabia’s financial landscape, bringing Wall Street and global companies closer to local investors — without crossing borders.
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