🇸🇦 Saudi Exchange Launches New Instrument to Trade Global Shares Locally
The Saudi Exchange (Tadawul) has introduced a new financial instrument called Saudi Depositary Receipts (SDRs), allowing investors in Saudi Arabia to trade foreign-listed stocks directly on the local exchange in Saudi riyals.
🧾 What Are SDRs?
Saudi Depositary Receipts (SDRs) are certificates that represent shares of international companies.
These are traded locally on Tadawul just like any Saudi-listed stock.
Each SDR is backed by an actual share of a foreign company held by a custodian.
Investors can buy and sell SDRs in riyals, without dealing with foreign exchanges or currencies.
🎯 Why This Matters
Easier Access to Global Companies
Saudi investors can now diversify their portfolios with exposure to international brands and sectors (like tech, healthcare, or energy), without leaving the domestic market.Foreign Companies Gain Visibility in Saudi Arabia
Global firms can now reach local investors more easily, potentially boosting their international shareholder base.Supports Saudi Arabia’s Vision 2030
This move strengthens Tadawul’s role as a regional financial hub and aligns with the country’s goal to modernize and internationalize its financial markets.
📈 Benefits for Investors
| Benefit | Description |
|---|---|
| No currency risk | Trades settled in Saudi riyals |
| No foreign account needed | Investors can use existing local brokerage accounts |
| More diversification | Exposure to global growth sectors |
| Regulated locally | SDRs are subject to Saudi financial regulations |
🔁 Future Outlook
The launch of SDRs complements other reforms in the Saudi capital market, such as the introduction of derivatives and enhanced market-making rules.
This may attract both domestic and international investors seeking flexibility and wider investment options.
In short:
The SDR initiative is a game-changer for Saudi Arabia’s financial landscape, bringing Wall Street and global companies closer to local investors — without crossing borders.