Bringing you live news and features since 2006 

Deutsche Bank to offer access to Saudi Arabian market via swaps

RELATED TOPICS​

Deutsche Bank says that it is ready to commence offering its international clients access to Saudi Arabia’s stock exchange, the largest equity market in the Middle East.

Deutsche Bank says that it is ready to commence offering its international clients access to Saudi Arabia’s stock exchange, the largest equity market in the Middle East.

Saudi Arabia’s Capital Market Authority (CMA) recently took the groundbreaking decision to allow non-resident foreign investors to conclude swap agreements with authorised entities. According to the CMA’s resolution authorized entities are to retain the legal ownership of the shares. Previously foreigners were denied access to the Kingdom’s stock market, except through mutual funds.

The swap agreements will be conducted through Deutsche Bank’s subsidiary in the Kingdom, Deutsche Securities Saudi Arabia, subject to final regulatory approval.

Henry Azzam, Deutsche Bank’s CEO in the Middle East and North Africa and Chairman of the Board of Deutsche Securities Saudi Arabia, says, “We are delighted with the CMA’s historic resolution, which we believe will greatly enhance the depth and breadth to of the Saudi capital market. This development will undoubtedly increase foreign capital inflows to the Kingdom’s stock market, promote greater transparency, reduce volatility associated with dominance of the retail investors in the Saudi market, and encourage more comprehensive equity research on listed companies.”

Deutsche Bank opened its first branch in Riyadh in 2006. In 2007, Deutsche Securities Saudi Arabia, a subsidiary of Deutsche Bank was granted a license by the Capital Market Authority of Saudi Arabia to offer brokerage and custody services, as well as arranging, advising and providing investment funds management.

Jamal Alkishi, CEO of Deutsche Securities Saudi Arabia, says, “There is huge demand from international investors for entry into the Kingdom’s markets. The Tadawul (Saudi Arabia’s stock exchange) has the largest number of blue chip companies in the Middle East, a market capitalization that stands around USD 500bn, constituting approximately 1 per cent of the capitalization of the global equity markets. Deutsche Bank is fully prepared to offer its international clients its services in the Kingdom, as we have worked for a long time at establishing the necessary platform and mechanism.”

Ricardo Honegger, Head of Global Markets for the Middle East and North Africa, says,  “The opening up of the Kingdom’s markets to international investors will herald a new era for the strongest and largest economy in the Middle East, and we applaud the regulators vision in allowing international investors a golden opportunity to access a very attractive, well diversified and the largest equity market in the region at a time of turmoil across international exchanges.”

Latest News

European ETFs raised USD47.8 billion in Q1, a 15 per cent increase compared to the same period in 2023, according..
LSEG Lipper’s March report finds that globally equity ETFs (+EUR113.2 billion) enjoyed the highest estimated net inflows for the month,..
Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..

Related Articles

Kristen Mierzwa, FTSE Russell
Index Investments Group (IIG), a division within index provider FTSE Russell, has extended its range of indices through two new...
ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by