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Logo of Saudi Exchange (Tadawul)
The Saudi Exchange (Tadawul) announced new amendments to the listing rules for debt instruments, in a step to enhance the attractiveness of the Sukuk & Bonds Market.
The move will position the stock exchange as a key channel for business financing and economic support, as well as ensuring investor protection.
Among the most notable changes is the reduction of the minimum limit for listing sukuk and bonds to SAR 5 million. This opens broader opportunities for issuing debt instruments with greater flexibility and efficiency, making the process more appealing.
Moreover, the debt instruments issued by funds, development banks and sovereign funds in the Kingdom, offered according to the offering rules, are exempt from some provisions in Part III of the Listing Rules. This move aims to attract various categories of issuers and issuances, and deepens the sukuk and debt instruments market.
Key Changes to Listing Rules on Sukuk and Debt Instruments Market
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Amendments Approved by Tadawul |
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Updates |
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Notes |
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Expanding the scope of exempt debt instruments offerings |
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Exempting debt instruments issued by funds, development banks, and sovereign funds in the Kingdom from public offering requirements, according to the Rules on the Offer of Securities and Continuing Obligations and the Listing Rules. |
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Tadawul approved reducing the minimum listing size for debt instruments to SAR 5 million. |
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Previously, the minimum listing size was SAR 50 million (if the issuer had listed securities) and SAR 100 million (if the issuer had no listed securities). |
Tadawul stated that the amendments to the debt instrument listing rules aim to enhance participation and investment in the local debt market. They also contribute to boosting the competitiveness of the Saudi market internationally through aligning regulations with the best global standards and practices.
Tadawul emphasized that the debt market offers investors and issuers great opportunities for diversification, helping them distribute risks across different asset classes and debt instruments. Debt instruments provide fixed and predictable returns, while high credit ratings support these instruments as reliable investment bonds in emerging markets. Additionally, the debt instruments offer an effective means of hedging against stock market fluctuations.
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