The ambitions of the Saudi stock exchange to become an eminent global capital marketplace have led it to take cues from industry leaders like the Hong Kong stock exchange. A high-ranking official from the Saudi Tadawul Group has indicated that the Hong Kong Exchanges and Clearing (HKEX) is a key benchmark for their reformative measures.
Nayef Al-Athel, the chief sales and marketing officer at Tadawul Group, expressed high regard for the HKEX, noting the valuable insights gained from its book-building framework for initial public offerings and its secondary offering regulations. His frequent visits to the city have solidified his admiration for the exchange’s practices.
“The team here has been very open to us and sharing their lessons and learnings from previous experiences,” Al-Athel commented during the first Capital Market Forum in the city, organized by Tadawul Group. “We learn a lot from the Hong Kong exchange.”
With a goal to elevate the Middle East’s largest bourse, where market capitalization has seen an 11 percent increase over three years, Tadawul Group is striving to enhance its status as a leading financial hub. This initiative aligns with Crown Prince Mohammed bin Salman’s Vision 2030 strategy, which aims to diversify Saudi Arabia’s economy beyond oil and increase foreign ownership in the stock market.
“We as a capital market group have ambitions to connect East to West. And for us to do so we need the right partners. We think the Hong Kong exchange is definitely the right partner for us to execute that strategy,” said Al-Athel.
The recent attention from global investors towards Hong Kong, spurred by the China Securities Regulatory Commission’s initiatives, has underscored the city’s significance in the financial world. The Tadawul’s Capital Market Forum marked its inaugural international event in Hong Kong, showcasing collaboration opportunities between Saudi and Hong Kong entities through bilateral meetings.
Excitement surrounds the potential outcomes and partnerships that may arise from the forum, as Al-Athel noted. The ties between Hong Kong and Saudi Arabia have strengthened following a visit by Chief Executive John Lee Ka-chiu to Riyadh, exemplified by the listing of the CSOP Saudi Arabia ETF in Hong Kong.
Al-Athel sees potential for further growth, including increased capital flow between Saudi Arabia and Hong Kong. Tadawul aspires to leverage the forum’s momentum to foster cross listings and other financial transactions, ultimately building a robust conduit between the two capital markets and their respective ecosystems.