Several Asian companies are in talks to list in Saudi Arabia as the kingdom considers a new listing regime to pave the way for share sales of foreign issuers, the chief executive of the Saudi bourse told Reuters.
Conversations are underway with Asian companies that are evaluating opportunities to tap into Saudi Arabia’s deep and increasingly diverse investor base, stock exchange CEO Mohammed Al-Rumaih said in an email interview on Wednesday.
“We’re seeing growing momentum around cross-border capital market activity, and Asia is a natural partner in this regard,” Al-Rumaih said, without providing further details on issuers.
He said that as of last month, around 15% of the international investors in Saudi Arabia’s qualified foreign investor program were Asian, demonstrating Asia’s rising investment appetite.
Riyadh’s Capital Market Authority last month concluded a consultation on a set of draft rules governing the offering and listing of different classes of shares.
The move is “a step toward enabling more flexibility in listings, including new share classes and structures, aligning with the evolving needs of issuers and investors”, Al-Rumaih said. “Initiatives like these help lay the groundwork for cross-border participation and innovation.”
Hong Kong and Saudi Arabia are looking into allowing more cross-border financial products, regulators from both markets said last week.
“Hong Kong and mainland China are increasingly important partners for Saudi Arabia’s capital market journey,” Al-Rumaih said.
He cited opportunities to deepen the ties by facilitating more cross-listed products, environmental, social and governance-linked instruments, and enhancing investor access in both directions.
“The growing energy cooperation between Riyadh and Beijing adds further momentum, enabling financial products and capital market flows that align with shared strategic priorities across both economies,” Al-Rumaih said.
The Saudi stock exchange has seen 15 initial public offerings (IPOs) raising over $1 billion so far this year, a nearly 30% increase over the same period last year.
Reuters
