The Securities Depository Center Company (Edaa) today announced the activation of the linkage with (Euroclear), the Brussels based international central securities depository (ICSD), to provide international investors with access to the local sukuk and bond market.
This linkage will provide an additional channel for international investors to access the sukuk and bond market within the Saudi Exchange, the largest in the Gulf Cooperation Council (GCC) area and among the largest stock exchanges globally, and one of the top three largest emerging market exchanges with a market capitalization of more than US$3.3 trillion.
Euroclear’s eligible international investors will now be able to settle domestically issued bonds via a direct nominee account in Edaa using their existing Euroclear accounts, and benefit from a suite of services including internal settlement, trade, and safe-keeping of Saudi government and quasi-government bonds listed on the Saudi Exchange, without the need to apply for a QFI status.
Raed Alhumaid, CEO of Edaa, said: “As the Securities Depository Center Company of the Saudi capital market, we are committed to providing services for both local and international investors at par with international best practices. The launch of our linkage with Euroclear will enable us to better serve our international investors, which will reduce market volatility and increase liquidity. We are very proud of this latest milestone which aims to increase the attractiveness of the Saudi capital market for all types of investors, in line with the objectives of Saudi Arabia’s Financial Sector Development Program (FSDP), as part of Vision 2030.”
Over the past few years, the Saudi capital market has seen an increased demand from international investors for Saudi listed Sukuk and Bonds, as the market issuances grew to over SAR 460 billion, with the increased global demand on government issuances.
