Saudi Arabia’s Securities Depository Center Company (Edaa) has announced the Capital Market Authority’s (CMA) approval of the International Central Securities Depositories (ICSD) Instructions.

Through these changes, Edaa aims to develop a consistent regulatory environment which is aligned with international best practice and helps to raise the efficiency and attractiveness of the Saudi capital market for foreign investors, while increasing the demand for debt instruments and ETFs listed on the Saudi Exchange.

This comes as part of the continuous development efforts by Edaa to build and strengthen bridges between issuers and investors, as well as provide market participants with secure and efficient services.

Raed Alhumaid, CEO of Edaa, said: “We continuously seek to emulate global best practice, enhance the efficiency of our securities depository services and the current capital market infrastructure for the benefit of local and international investors. The launch of the ICSD instructions will provide new channels allowing foreign investors to trade on the Saudi Exchange, specifically debt instruments and ETFs, which we anticipate will lead to a higher volume of trading, increased liquidity, and capital inflows.

“We are currently working with international depository centers to complete the linkage this year, and will make further announcements in due course. We are proud of the role Edaa has played to support the ongoing development of the Saudi capital market, in line with the Financial Sector Development Program and the Debt Market Development Committee, part of Vision 2030.” – TradeArabia News Service