Morgan Stanley Saudi Arabia Approved as Market Maker for Eight Securities on Tadawul

The Saudi Exchange (Tadawul) has approved Morgan Stanley Saudi Arabia to act as a market maker for eight securities across both its main trading platform and parallel index, Nomu. The move is aimed at enhancing market liquidity and improving price efficiency, in line with Tadawul’s regulatory framework.

Boosting Liquidity on the Main Market

Under the new approval, Morgan Stanley Saudi Arabia will provide market-making services for four securities listed on the Tadawul All Share Index (TASI), ensuring order flow and price stability.

Among these, the firm will act as a market maker for Arabian Internet and Communications Services Co., meeting the following conditions:

• 80% minimum presence of orders
• SR150,000 ($39,982) minimum order size
• 0.65% maximum spread
• 5% minimum value traded

Similarly, Morgan Stanley will provide liquidity services for Electrical Industries Co., Elm Co., and Co. for Cooperative Insurance, maintaining identical trading conditions except for Electrical Industries Co., which will have a minimum order size of SR75,000.

Expanding Market Making on Nomu

On the parallel Nomu market, Morgan Stanley Saudi Arabia has been approved to act as a market maker for:

• National Environmental Recycling Co.
• International Human Resources Co.
• Almuneef Co. for Trade, Industry, Agriculture, and Contracting
• Aqaseem Factory for Chemicals and Plastics Co.

For these Nomu-listed firms, the company will ensure:

• 50% minimum presence of orders
• SR50,000 minimum order size
• 5% maximum spread
• No minimum value traded requirement

The inclusion of these companies under the market-making program is expected to enhance liquidity and improve price discovery within the Saudi stock market.

Strengthening Saudi Arabia’s Capital Market

Morgan Stanley Saudi Arabia’s participation in market making aligns with Saudi Arabia’s broader financial market reforms, which aim to attract international investment and increase capital market efficiency.

In November 2023, the investment bank secured approval to establish its regional headquarters in the Kingdom, reinforcing Saudi Arabia’s appeal as a financial hub. This move aligns with the country’s Regional Headquarters Program, which offers international firms:

• 30-year tax exemptions on corporate income and withholding tax for headquarters activities
• Discounted operational costs and business support services

Morgan Stanley first entered the Saudi market in 2007, launching an equity trading business in Riyadh, followed by the establishment of an equity fund in 2009.

With its expanded role as a market maker, the investment bank is set to further contribute to the development of Tadawul, ensuring a more liquid and efficient trading environment for investors in Saudi Arabia.