Elkuwaiz: “The CMA launched a range of initiatives to develop the Sukuk and Debt Instruments market to deepen the capital market and enhance its role in facilitating finance.”
As part of the Capital Market Authority’s (CMA) continuous efforts to develop the Sukuk and Debt Instruments market in the Kingdom, The Board of the CMA issued its resolution approving the listing of Sukuk and Debt instruments issued by the Government of the Kingdom of Saudi Arabia in the Saudi Stock Exchange (Tadawul).
Moreover, this listing is a fruitful result of the close coordination between the CMA, Public Debt Management Office at the Ministry of Finance and Tadawul.
The Sukuk and Debt instruments issued by the Government of the Kingdom of Saudi Arabia were registered in Tadawul during the first half of 2017, and were displayed on Tadawul's website, at the time, as a first step. CMA's approval is to be the second step prior to the listing of the instruments and are available for trading to investors of all categories, including qualified foreign investors.
In this regard, HE. Mr. Mohammed Elkuwaiz, commented: "The Sukuk and Debt Instruments market is one of our top priorities in the CMA due to its importance as a main channel of financing offered by the capital market. Also, this instruments will increase the variety of investment products available to the investors. Thus, these products will achieve greater depth to enhance the role of the capital market in facilitating finance, increase its attractiveness for investors, and stimulating investments.”
Mr. Elkuwaiz added: “The CMA has launched a series of initiatives to further develop the Sukuk and Debt Instruments market such as the Offer of Securities and Continuing Obligations Rules was issued, which includes greater flexibility of the Sukuk and Debt instruments issuance requirements, as well as the introduction of regulatory requirements for listing through special purpose entities that allow the issuance of different debt instrument structures through public or private offerings. Furthermore, the CMA anticipates that the Offer of Securities and Continuing Obligations Rules and the Listing Rules will contribute in many aspects that include greater flexibility of the public offering, development of new types of offerings, enhancement to the requirements of some types of offerings, and increased flexibility for the requirements of continuing obligations.
The CMA will work to further enhance the role of the capital market in facilitating financing, developing the Sukuk and Debt Instruments market, and strengthening the role of the financing funds. Hence, it will contribute in forming economic entities that will support the Kingdom's GDP and national economy.
It is worth noting that the total number of government debt instrument issuances to be listed has reached (45), with a total nominal value of (SR. 204.385) billion. These Debt instruments are distributed as follows: (13) instrument issuances of floating-return with a nominal value of (SR. 68.21) billion, and (20) Debt instrument issuances of fixed-return with a total nominal value of (SR. 77.72) billion. The total number of Sukuk issuances is (12), with a total nominal value of (SR. 58.46) billion.
