Saudi Arabia: The Saudi Stock Exchange (TADAWUL) launched the kingdom’s first exchange-traded derivatives market and clearing house on Sunday, as part of its strategy to make its equity markets more attractive to foreign investors.

Using Nasdaq technology, the Saudi Futures 30 (SF30) Index Futures Contract is based on the MSCI Tadawul 30 (MT30), the first exchange-traded derivatives product.

“This is a significant step in introducing sophisticated market products and creating a trading environment that is attractive to local as well as international investors,” said Tadawul CEO Khalid Alhussan.

In a separate statement it said Goldman Sachs Saudi Arabia has become a member of Tadawul with the right to conduct brokerage services for derivatives trading and to deal as a principal and as an agent for the new market launch.

Saudi authorities have introduced a raft of reforms to attract overseas share buyers and issuers as part of efforts to lure foreign capital and diversify the oil-dependent economy.

In 2019, the Saudi market joined the FTSE Emerging All Cap Index and the MSCI Emerging Markets Index, triggering more foreign fund inflows.
In July, Tadawul officials said the bourse plans to launch other derivatives-related products, such as options, and complete the whole system by around the end of 2021 or the start of 2022.