Tadawul forms wholly-owned Securities Depository Center Co.

Tadawul, the Saudi Stock Exchange, has formed a closed joint stock SAR 400 million Securities Depository Center Co. as the exchange is becoming more aligned with global securities standards.

The company has 40,000,000 million shares with a nominal share value of SAR 10, and will focus on registering investment portfolios, deposit, transfer, settlement, and clearance among other things, Tadawul said in a statement on its website.

“Tadawul aims to achieve its strategic objectives in relation to developing infrastructures of subsequent procedures to execute transactions in alignment with global standards,” Tadawul said in a statement.

It added that the company’s purpose is to “enhance the efficiency of deposit and registration services offered by the depositary center in alignment with the 2030 Vision through developing a more resourceful environment that fosters excellence within all sectors related to the capital market.”

Saudi Arabia plans to modernize its economy through diversification of economic activities to move away from reliance on oil receipts. The world’s biggest oil exporter wants to attract foreign investment, sell stakes in state-owned companies, and develop its financial system.