Saudi Exchange launches Saudi Depositary Receipts, opening global investment door

Dubai: The Saudi Exchange has introduced Saudi Depositary Receipts (SDRs), a groundbreaking financial instrument that enables investors in the Saudi Capital Market to access shares of international companies directly from their local market. This marks a key milestone in the Kingdom’s ambition to become a leading global financial hub.

SDRs provide Saudi investors with a unique opportunity to diversify their portfolios by investing in foreign equities without needing a foreign investor account. These receipts are traded and settled in Saudi Riyals on the Saudi Exchange, simplifying access to global markets.

In addition, SDRs offer liquidity and flexibility by allowing investors to convert the receipts into the underlying foreign shares, which can then be traded on the international exchange. This dual-market feature promotes ease of transfer between the Saudi Capital Market and overseas exchanges.

Mohammed Al-Rumaih, CEO of the Saudi Exchange, commented, “The launch of SDRs represents a major milestone in positioning Saudi Capital Market as a global financial hub. It opens doors for investors to engage with international companies and diversify their investments.”

Hanan Al Shehri, CEO of the Securities Depository Center Company (Edaa), added, “Our upgraded post-trade infrastructure supports this innovation, reinforcing Saudi Arabia’s commitment to a dynamic and competitive capital market on a regional and global scale.”

The SDR initiative supports Saudi Vision 2030’s Financial Sector Development Program (FSDP) by enhancing market accessibility and broadening investment choices for local investors.