Saudi Stock Exchange is preparing for introduction of AI and Blockchain
The Saudi Stock Exchange in preparation for a digital expansion phase reliant on AI and Blockchain will be introducing a new generation of investment products, focused on debt instruments and derivatives.
According to CEO of Tadawul Group, Khalid Al Hussan this is in line with the rapid development the market is witnessing. Al-Hussan told Asharq Bloomberg that the Saudi financial market is “going through the fastest stage of its development in decades,” adding that it is “racing to innovate new products — from debt instruments to derivatives and data, in preparation for a digital expansion phase reliant on AI and blockchain.”
Regarding technology, Al-Hussan disclosed that Tadawul established Wamid three years ago as its innovation arm in tech, stating: “Our priority is to be ready for any global changes. The company is studying AI, blockchain, digital assets, and machine learning.”
He revealed that Wamid acquired Direct Financial Network Co., or DirectFN, and signed more than 13 tech agreements with international companies.
Over the past eight years, the Saudi stock market has seen significant growth, with the number of listed companies rising from 100 to over 380 today, across two markets with a total capitalization exceeding $2.5 trillion.
He believes that the market is experiencing “significant changes and record foreign investor attraction,” with foreign ownership rising to over $110 billion and more than 4,400 foreign investors registered.
Regarding the readiness of the market for foreign investors, Al-Hussan emphasized that the true benchmark is alignment with global indices, emphasizing that “the main indicator is developing indices according to international standards.”
The CEO added: “Today, the Saudi financial market is part of most global stock indices, and we have started a similar phase for debt instruments, which is the biggest proof of our standards aligning with investor expectations.”
Al-Hussan revealed that the debt instruments market will be the first focus of upcoming product offerings, noting its importance for both the private and public sectors in capital formation and liquidity, adding that there are plans to develop the secondary market and increase trading depth in this sector.
The second focus is on derivatives, where significant changes, he added, are being made to the operational structure, and new instruments are expected to enhance stock market liquidity and expand hedging and diversification opportunities for investors.
According to Al-Hussan, the third focus is on data as a standalone investment asset. “We have invested heavily in data over the past two years. It is not just a revenue stream, but a key element in deepening the market,” Al-Hussan said, adding that data “will become part of the global competition among financial markets.”
