Business | Markets
Saudi Arabia sets up new company to manage stocks
Saudi Arabia will establish a 1.2 billion-Saudi riyal company to manage matters related to trading in stocks and bonds.
- By Mariam Al Hakeem, Correspondent
- Published: 00:00 March 22, 2007
Riyadh: Saudi Arabia will establish a 1.2 billion-Saudi riyal company to manage matters related to trading in stocks and bonds.
The decision was taken by the Saudi cabinet during its regular weekly session on Monday.
An application to establish the company was filed with the cabinet by the minister of commerce and industry.
The company has been named The Saudi Financial Market Company - Tadawul.
The company's capital is divided into 120 million shares.
The company will be responsible mainly for providing and managing mechanisms to trade in stocks and bonds as well as making settlements and registering ownerships of financial documents and storing relevant information. Part of the company's shares will be offered to the public through an initial public offering (IPO) at a time determined by the company's extraordinary general assembly.
The setting up of the new company comes nearly one year after the Saudi stock market collapsed in February 2006.
US trade ties
Meanwhile, US Assistant Secretary of Commerce and Director General of the US Foreign Trade Commission Israel Hernandez said that his country is interested in maintaining strong commercial and economic relations with Saudi Arabia.
The visiting US official's remarks came after a meeting on Monday with chairman of the Riyadh Chamber of Commerce and Industry Abdul Rahman Al Jeraisy.
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