Saudi Tadawul Group and Bahrain Bourse have announced a landmark cooperation agreement signed during the official visit of HRH Prince Salman bin Hamad Al Khalifa, Crown Prince, Prime Minister, and Chairman of the Executive Board, to KSA. 

 

This pivotal deal, inked on the sidelines of the third meeting of the Saudi-Bahraini Coordination Council, chaired by HRH Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister, aims to boost the synergy between the two prominent financial entities. 

 

The agreement focuses on strengthening connectivity and integration between Saudi Tadawul Group and Bahrain Bourse, with a keen emphasis on developing the infrastructure boost liquidity in both markets.

 

The agreement was signed by Eng Khalid Al Hussan, the Chief Executive Officer of Saudi Tadawul Group and Sheikh Khalifa bin Ibrahim Al Khalifa, the Chief Executive Officer of Bahrain Bourse. 

 

Critical step

Highlighting the significance of the agreement as a critical step in fostering connectivity and integration between the two markets, Al Hussan said: “The agreement with Bahrain Bourse, allows us to further drive regional integration amongst GCC exchanges, whilst unlocking exciting opportunities for investors regionally and internationally. This agreement is in line with our commitment to elevate the Saudi capital market and we look forward to exploring future opportunities to collaborate on new products, as well as enhancing the infrastructure across both markets for all market participants.”

 

Sheikh Khalifa said: "This initiative is instrumental in reinforcing the ties of collaboration across the capital market sectors of the two countries. It is a key part of concerted efforts to enhance inter-exchange cooperation and linkages within the GCC countries, resonating with the strategic objectives outlined for the development of the financial services sector during the 2022-2026 period."

 

Investment opportunities

"This agreement seeks to generate a multitude of investment opportunities for investors in both countries. This will be achieved through the development and introduction of various innovative products and the enhancement of trading mechanisms. This includes streamlining deposit and clearing processes in both markets, which is anticipated to considerably boost the linkage and collaboration between the two markets, and in turn, support the economic growth of the two countries," he added.

 

As per the agreement, both parties will work on strengthening and developing an integrated infrastructure to enhance investments in both markets. This includes the development of several new products and markets, in addition to improving the infrastructure in both markets.--TradeArabia News Service