The Saudi Stock Exchange (Tadawul) has announced its transformation into a holding group structure and reinforcing its capabilities in technology innovation by launching a dedicated applied technology solutions company, Wamid.

 

This transformation marks a new chapter in the group's history and signals its readiness for the IPO in 2021.  

 

Announcing the launch of Saudi Tadawul Group today (April 7), the Saudi bourse said it will become the parent company with a portfolio of four subsidiaries: Saudi Exchange, a dedicated bourse business (previously known as the Saudi Stock Exchange Company - Tadawul), the Securities Clearing Center Company (Muqassa), the Securities Depository Center Company (Edaa) and Wamid – a new innovative applied technology services business, focused on providing innovation and nascent technologies within the Saudi economy through pragmatic innovation.

 

The transformation of Tadawul into a holding group structure is another important step forwards in the ongoing development of the Saudi capital market, its infrastructure and members’ offerings, it stated.

 

The launch of Wamid will add depth and diversity to the Saudi Tadawul Group and its subsidiaries' offerings in addition to strengthening market infrastructure through innovative solutions and capture expansion opportunities through targeted investments in an array of sectors and industries. 

 

It will increase the Saudi capital market's attractiveness among global investors and reinforce its position as the issuers' exchange of choice, said the statement.

 

The group will benefit from the integration and synergies between its subsidiaries, ensuring efficient intra-group operations across the organization. The operational independence of each subsidiary will create an agile environment supporting rapid responses to evolving global and local market trends, it stated. 

 

It will also facilitate the introduction of best-in-class services to all market participants, diversification of investment opportunities, and the continued development of the Saudi capital market, its infrastructure, and member's offerings, the statement added.

 

Sarah Al Suhaimi, the current head of Tadawul's Board of Directors, would be spearheading the group structure as its Chairperson along with Engineer Khalid Al Hussan as the Chief Executive Officer. 

 

Mohammed Al Rumaih, who has more than 17 years of experience in the financial sector, has been named CEO of the Saudi Exchange. 

 

Previously, Al Rumaih had held various administrative and leadership positions in Tadawul, and oversaw the development of several financial instruments, major listings and marketing initiatives.

 

Furthermore, Mohammed Al Nory has been appointed as CEO of Wamid. He brings 16 years of experience in commercial and investment banking, with a wealth of knowledge in corporate finance, business development and Capital Markets' products. 

 

At a press conference held virtually today, Al Suhaimi said: "The transformation into the new structure under Saudi Tadawul Group, will support the continued growth of the Saudi capital market and reinforce its position as a global market leader and advanced capital market."

 

"This is a significant achievement in our journey to transform Saudi Arabia's economy. Comprehensive capital market reforms are not only prudent, but essential to ensuring higher economic growth, and achieving the nation-wide goal of the successful delivery of Saudi's Vision 2030 and aligned with the strategy of the Public Investment Fund (PIF)," noted Al Suhaimi.

 

Al Hussan said: "The new structure will enable us to deliver high-quality services across all our business lines, increase our competitiveness, and align our capital market with the rapid growth of Emerging Markets."

 

"I'm confident that the Saudi Tadawul Group and its subsidiary companies will shape what comes next in terms of capital market development in Saudi Arabia, serving as the bridge connecting global investors and regional economies. The transformation provides a strong platform for the Saudi Tadawul Group's IPO," he added.-TradeArabia News Service