By Mohamed Abu Meleeh

Riyadh – Mubasher: The Saudi Stock Exchange (Tadawul) could join the emerging markets index one year after it opens to foreign investors this June, announced a market official.

Speaking exclusively to Mubasher, Khaled Al Hassan, general manager for markets at Tadawul, said the MSCI Emerging Market Index does not allow the inclusion of a stock market before one year of its opening up to foreigners.

“This means that we have one year to be added to the index, as traders will likely enter Tadawul by mid-June this year,” said the official.

According to Al-Hassan, a number of investment funds and investors support Tadawul’s inclusion to the emerging markets index, as such support is a prerequisite for inclusion.

Asked about key achievements to be seen on Tadawul this year, the official stated that the stock market will launch a new trading system called X-Stream INET, which is being applied in more than 30 stock markets worldwide including NASDAQ.

The move is part of a plan to upgrade market systems by the third quarter of 2015, said Al-Hassan, adding that the new system will enable trading on all types of securities.

In the last two years, Tadawul has held talks with more than 250 companies with respect to listing on the market, Al-Hassan said.

Meanwhile, Tadawul’s chairman, Khaled Al-Rabia, said the stock market is not currently considering going public but  is rather focusing on boosting services and diversifying sources of income.

The top official also said Tadawul will launch roadshows for foreign investors starting in the last quarter of 2015, with focus on North America and Europe during the first year.

Translated by Sayed Abdel Rahman