Clifford Chance

Progress on the liberalisation of the Saudi equity market

30 January 2017

The Saudi Stock Exchange (Tadawul) has published, for public consultation, draft rules and regulations in relation to the move from the T+0 to the T+2 cycle for settlement of securities transactions.

In our Client Briefing of May 2016, we spoke about initiatives announced by the Saudi Capital Market Authority (CMA), which is the Saudi capital markets regulator, to stimulate the development of, and increase foreign participation in, the Tadawul by introducing the T+2 cycle for settlement of securities transactions, and regulations permitting securities lending and covered short selling of Tadawul-listed securities. On 9 January 2017, the Tadawul took an important step towards the implementation of these initiatives by issuing a number of publications, which are available on the Tadawul website.

In this briefing, we aim to provide a succinct overview of these regulatory changes and invite our clients to participate in the public consultation process.

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