{"id":93231,"date":"2025-01-09T00:00:00","date_gmt":"2025-01-09T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2025\/01\/09\/foreign-issuers-could-soon-be-able-to-list-sdrs-on-tadawul\/"},"modified":"2025-01-09T00:00:00","modified_gmt":"2025-01-09T00:00:00","slug":"foreign-issuers-could-soon-be-able-to-list-sdrs-on-tadawul","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2025\/01\/09\/foreign-issuers-could-soon-be-able-to-list-sdrs-on-tadawul\/","title":{"rendered":"Foreign issuers could soon be able to list SDRs on Tadawul"},"content":{"rendered":"

Foreign issuers<\/strong> could soon be able to list Saudi depository receipts (SDRs) on <\/strong>Tadawul <\/strong>under the Capital Market Authority\u2019s (CMA) draft amendments to the Exchange Rules and Procedures (pdf)<\/a>. The proposed tweaks will be up for public consultation on<\/a>Istitlaa<\/a> until Friday, 7 February, and are set to apply to foreign issuers, local depositories, and investors. <\/p>\n

(** Tap or click the headline above to read this story with all of the links<\/strong> to our background and outside sources.)<\/p>\n

What are SDRs?<\/strong> Saudi Depository Receipts (SDRs) are financial instruments that enable Saudi investors to trade shares of foreign companies on Tadawul, without those companies needing to list their shares directly in Saudi Arabia. Essentially, SDRs represent ownership in shares of a foreign company, with each SDR backed by actual shares held by a custodian in the company's home country.<\/p>\n

The rationale: <\/strong>SDRs provide significant benefits to all parties involved. For foreign companies, SDRs offer access to Saudi capital markets and investors without the complexities and costs of a direct listing. For Saudi investors, they provide a tool to invest in international companies while trading on a local platform, eliminating the need to transact on foreign stock exchanges. <\/p>\n

To qualify, foreign issuers looking to list SDRs must meet specific requirements.<\/strong> These include having shares listed on another regulated exchange, securing approval to list SDRs from said foreign exchange, having at least 200 public shareholders at the time of listing and ensuring that 30% of issued shares are owned by the public. Issuers are also required to maintain continuous compliance with liquidity and shareholder thresholds.<\/p>\n

Other key changes:<\/strong><\/p>\n