International investors in bonds and exchange-traded funds will have access to the $ 2.5 trillion Saudi markets without having to apply for special status.
Clearstream, Deutsche Börse Group’s post-trade service provider, will connect the Saudi capital market to its network following the merger with the Securities Depository Center Company (Edaa), a unit of the Saudi Tadawul Group.
Clearstream is the first International Central Securities Depository (ICSD) to offer international investors access to the Saudi capital market, which is home to some of the biggest bond sales in the region.
Eligible customers will have access to and trading on the Saudi Arabian Stock Exchange from June 14, it said in a statement on Monday that will allow international investors to access the Saudi capital market by allowing the liquidation of government bonds.
Convertible Saudi riyals Corporate Bonds and ETFs Eligible clients do not need to apply for Qualified Foreign Investor (QFI) status, which could increase demand for Saudi government bonds from cross-border investors and help improve national market liquidity.
“The Saudi capital market has become increasingly attractive for international investors,” said Jan Willems, Director of Global Markets at Clearstream. Customers access it together with excellent market partners with a large local reach. Saudi Arabia and other Gulf states are attracting increasing interest from global bond investors with an issue in the UK valued at more than $ 100 billion in the first quarter.