Saudi Arabia Attracts $533 Million in First Off-Market Debt Trading

SadaNews - Saudi Arabia is witnessing new activity in debt trading following the launch of the off-market settlement option for sovereign riyal bonds, as part of the Kingdom's efforts to develop its financial markets and attract more foreign investors.

Approximately 2 billion riyals ($533 million) were traded off-market in June, the first full month this mechanism was available, according to data from the Saudi "Tadawul" group, the official operator of the stock exchange.

The off-market settlement activity raised the total trading value in the market to 5.2 billion riyals, compared to an average of around 4.3 billion riyals during the first five months of the year, according to the data. "Tadawul" stated that over 80% of off-market transactions involved a foreign investor.

Developing Financial Markets

The off-market settlement mechanism was launched in mid-May, as part of the Kingdom's efforts to develop more advanced financial markets under the Vision 2030 framework announced by Crown Prince Mohammed bin Salman. Last year, the Kingdom intensified its efforts to attract high-frequency trading companies and announced its intention to enhance the promotion of public offering listings.

For its part, the Capital Market Authority stated it is considering easing tax regulations on local corporate bonds.

This move also coincides with the Saudi government's transformation into a more active borrower, both domestically and internationally.

Beyond sovereign bonds, local corporate bonds are beginning to receive greater attention after being included in emerging market bond indices in recent years, according to a report released by "S&P Global" on Monday.

"S&P" highlighted that these listings, in addition to the new investment law approved in 2024, are positive factors pushing the local market forward, but noted that liquidity and participation from foreign investors remain limited.