Single Stock Options Contracts Help in Developing Saudi Market, Attracting Investors

Saudi Exchange (Tadawul) announced that Single Stock Options (SSOs) contracts will be available to trade as of Monday. (SPA)
Saudi Exchange (Tadawul) announced that Single Stock Options (SSOs) contracts will be available to trade as of Monday. (SPA)
TT

Single Stock Options Contracts Help in Developing Saudi Market, Attracting Investors

Saudi Exchange (Tadawul) announced that Single Stock Options (SSOs) contracts will be available to trade as of Monday. (SPA)
Saudi Exchange (Tadawul) announced that Single Stock Options (SSOs) contracts will be available to trade as of Monday. (SPA)

The Saudi Exchange (Tadawul) launched on Monday single stock options (SSOs) contracts, the newest offering in its derivatives market.

The new offerings include American-style options that are physically settled for some of the Kingdom’s most prominent companies: Saudi Aramco, Al Rajhi Bank, stc and SABIC.

In remarks to Asharq Al-Awsat, financial analysts described the launch of the SSOs contracts as a move towards developing the Saudi financial market, diversifying its investment tools and channels, and attracting capital, major investment companies, and foreign investors to the Saudi market.

CEO of Razeen Capital Mohammed Al-Suwayed said options contracts were very important in attracting additional capital to the Saudi Exchange, and helping long-term investors protect their investments and increase methods of controlling financial market risks.

Financial analyst Abdullah Al-Jabali,noted that the SSOs contracts would contribute to the development of the Saudi financial market and its investment tools, and expand the base of channels for investors.

He added that the Capital Market Authority’s selection of four of the largest and most heavily weighted companies in the market for the SSOs contracts confirms the Authority’s keenness on the importance of this investment tool and the necessity of its use by trading and investment professionals in the financial and stock markets.

In a statement, Tadawul announced that SSOs contracts will be available to trade as of Monday, in which investors can trade SSOs on four listed stocks as their underlying assets.

It added that SSOs contracts were the third derivatives product to be introduced in the Saudi Exchange and will be cleared by the Securities Clearing Center Company “Muqassa”.

The first tranche of SSOs will be based on the following listed companies: Aramco, Al Rajhi Bank, Saudi Telecom Co. and SABIC.



Saudi Council of Economic and Development Affairs Reviews Local, Global Economic Developments

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
TT

Saudi Council of Economic and Development Affairs Reviews Local, Global Economic Developments

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

The Saudi Council of Economic and Development Affairs has convened via video conference to review reports and agenda items, including a monthly update on local and global economic developments for October 2024.

The update provided an overview of the global economy, analyzed developments in major economies, identified key challenges, and assessed their potential impact on the national economy.

The council reviewed the Kingdom's significant strides in the cybersecurity sector. The nation's classification as a 'Role-modelling' in the UN Global Cybersecurity Index 2024 reflects the unwavering support of the wise leadership for the sector and in implementing Saudi Vision 2030's programs, it said.

The council also reviewed a report on the implementation of its decisions and recommendations from the third quarter of 2024. The report detailed the council's outputs. It highlighted a notable increase in entities achieving over 98% in performance indicators.

The council was briefed on the outcomes of the Saudi delegation's participation in the first Saudi-Brazilian Aviation Conference, including the signing of agreements and memoranda of cooperation that will further solidify the Kingdom's leading role in the aviation sector, aligning with the plans and strategies of Vision 2030.

The council discussed other topics and reports, including those related to the Local Content and Government Procurement Authority and the national program for leadership development.

It also reviewed the economic outlook report for the first quarter of 2024. It examined the executive summary of foreign trade for July, the summary of the wholesale price index report for August, and the summary of the consumer price index report for August.

It made necessary decisions and recommendations on these matters.