Saudi Arabia signs deal with Nasdaq
The Gaza Post|The News of Palestine-Saudi Arabia
Saudi Arabia’s stock exchange, the Tadawul, has signed an agreement with Nasdaq to revamp the infrastructure of its markets.
The deal will involve upgrading Tadawul’s post-trade technology, including registry, depository and risk management, and the modifications should be completed during the second half of 2020.
The move comes as Saudi Arabia is attempting to push its economy beyond a reliance on oil. It also coincides with an ongoing battle between some of the world’s largest stock exchanges to lure state-owned oil giant Saudi Aramco to their markets for a mega-float – just last month, Trump said he wanted Saudi Arabia to strongly consider the New York Stock Exchang Nasadaq.
“The ambition of Tadawul to become an innovative, world-leading exchange company is not only admirable but inspiring to our industry,” said Adena Friedman, president and chief executive of Nasdaq.
“By addressing the demand to overhaul, modernise and evolve its post-trade infrastructure, this demonstrates a clear vision by Tadawul to attract capital – both domestic and foreign – and present Riyadh as a major financial destination.”
As well as introducing a new central counterparty clearing system, Nasdaq’s technology will allow Tadawul and market participants to introduce new asset classes to the market and offer new services to investors.