Nomura To Offer Tadawul Access

The Japanese bank has received approval to offer foreign investors access to Saudi Arabia’s bourse.

Global investment bank Nomura has received authorisation from the Saudi Arabian Capital Markets Authority (CMA) to offer international investors access to the Saudi Arabian stock market (Tadawul), the company said in a statement today.

Nomura will offer access to Tadawul through total-return swap products, whereby participation securities are issued to foreign investors.

“Fuelled by the government’s five-year, $400 billion infrastructure investment plan, the Saudi economy is expected to continue experiencing healthy growth in the years to come,” Khaled AlKhattaf, CEO of Nomura Saudi Arabia said in the statement.

“Nomura’s ability to execute transactions for international institutions via swaps, is a significant milestone and will help facilitate the flow of foreign capital into the kingdom,” he said.

Tadawul is the largest and most liquid stock market in the Arab region, and the bourse has around 150 listed companies valued at $337 billion, according to Thomson Reuters data.

Nomura, which entered the Saudi market in 2010, also has offices in Dubai, Doha and Bahrain.