In line with the efforts of the Public Debt Management Office to develop the local sukuk market and diversify its investor base, Tadawul has started implementing the amendment of the nominal value of local listed Sukuk issued by the government from 1 million SR to 1,000 SR, without changing the size of the issue.
This includes 29 issuance of investment securities issued to finance the budget. The size of the bond and sukuk market is currently estimated at 292 billion SR, representing 66 issues including 5 for the private sector and the rest for the government.
On this occasion, CEO and Managing Director of Al Jazira Capital Eng. Ziad Aba Al-Khail stated that the future is dawning and promising opportunities are blooming.
He praised this important step in developing the Saudi financial market, sukuk, bonds, debt instruments, stimulating exporters to include bonds and bonds denominated in local currency in the Saudi debt market and encouraging them to trade these tools to increase liquidity in the Saudi market.
He clarified that Al Jazira Capital is one of the first companies that provide complete services for customers wishing to trade in sukuk and bonds through their trading website “Tadawul”.
“Tadawul” allows customers to buy and sell sukuk and see prices directly online through a single screen that includes all the investor’s requirements, execution of purchase and sale orders with unprecedented flexibility and complete confidentiality and security using computers, tablets or mobile phone apps so they can stay in constant contact with the developments in the financial market, enabling them to make trading decisions, as well as the presence of specialized staff with the expertise to execute orders by telephone.
Eng. Aba Al-Khail valued the Custodian of the Two Holy Mosques King Salman and His Crown Prince Mohammed bin Salman’s keenness on the happiness and well-being of citizens and building a strong developed economy, and expected that these decisions will motivate members of the community from different sectors to increase their investments in government debt instruments.
He emphasized on the importance of increasing the savings and investment awareness of citizens, where Sukuk are considered one of the best guaranteed and risk-free investment outlets, considering that the state’s payment of Zakat and income tax resulting from the government bonds issued by the Ministry of Finance will strengthen domestic and international investment in them.
He added that the decision came as a confirmation that the citizens are the focus of attention of our wise leadership keen on opening the way for them to participate in supporting development projects, and as a continuation of the fine policy they follow for the welfare, stability and security of citizens. As well as to achieve growth and development programs within the framework of the financial sector development program, one of the most important programs of the “2030 Vision”.
Source MENAFH