Saudi Arabia’s Tadawul completes acquisition of 32.6% stake in DME Holdings

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Saudi Tadawul Group has completed the acquisition of a 32.6 per cent stake in Dubai Mercantile Exchange (DME), a $28.5m (SAR107m) deal that makes the stock exchange operator the joint largest shareholder along with US-based CME Group.

Under the deal, GME is set to undergo a transformation. It will be rebranded as the Gulf Mercantile Exchange (GME) and will expand in energy, metals, and agricultural products. Tadawul also has the option to take majority control of the exchange after four years, paving the way for a promising future.

Founded in 2007, GME lists the Oman crude oil futures contract and counts Oman Investment Authority and Dubai Holding among its shareholders.

Tadawul’s investment represents a significant opportunity to leverage world-class capabilities and expertise, accelerating GME’s growth as a regional commodities leader that is well-positioned to capture global commodities demand.

Following the closing of the deal, GME will continue to operate from its headquarters in the Dubai International Financial Centre and will remain regulated by the Dubai Financial Services Authority.

CME Group will continue to provide its industry-leading CME Globex trading technology and clearing services to GME.

Saudi Arabia converted Tadawul into a holding company ahead of its initial public offering in 2021. The stock market operator surged on its trading debut after it raised $1bn via a public offering, marking the biggest exchange IPO since Euronext went public in 2014.

The Riyadh-based firm’s portfolio consists of four subsidiaries: Saudi Exchange, its stock exchange business unit, the Securities Clearing Center Company (Muqassa), the Securities Depository Center Company (Edaa), and the innovation unit Wamid.

Read: Saudi Tadawul Group acquires 32.6% stake in Dubai Mercantile Exchange