These changes are mostly meant to boost market depth and liquidity by motivating more general involvement of issuers and investors. The new laws are intended to release great potential for several kinds of debt issuances by increasing access and streamlining procedures, hence strengthening the debt capital market in Saudi Arabia . From bigger companies to small and medium-sized businesses (SMEs), these developments are expected to draw a wider spectrum of players, therefore facilitating the raising of capital by a greater variety of organizations using debt instruments.

The minimum issuing size for conventional bonds and Sukuk ( Islamic bonds) has dropped among other changes inside the modifications. Smaller issuers, notably SMEs, significantly benefit from this action since it reduces the obstacles to debt market access, therefore enabling them to create debt instruments more freely and flexibly. The Saudi Exchange wants to democratize the debt market by making issuing criteria more easily available, therefore opening the path for more varied issuers to engage and improve market vitality.

The changes also bring exemption for some debt instruments. Particularly those from Saudi Arabia's development funds, sovereign funds, and specific banking entities, debt offerings made through exempt offers in compliance with the Rules on the Offer of Securities and Continuous Obligations will be excluded from some provisions outlined in Part 3 of the updated listing rules. This exception is meant to expedite the issuing process for these particular instruments, therefore simplifying the route to market for quasi-public and public organizations.

The CEO of the Saudi Exchange, Mohammed Al Rumaih sees these changes as a major turning point in the continuous growth of Saudi Arabia's debt capital market. He underlined that these developments show the exchange's will to build a sophisticated debt capital market globally competitive in line with Saudi Arabia's Vision 2030. The Financial Sector Development Program, which especially seeks to increase the debt market, is part of the Vision 2030 project, a whole strategy plan to diversify the economy and lower reliance on oil. The Saudi Exchange wants to attract issuers and investors to the local debt market by lowering the listing criteria so promoting involvement from a broad range of stakeholders.

Saudi Arabia's debt capital market has seen significant changes recently meant to improve efficiency and match international norms. These developments, executed in 2023, have upgraded post-trade infrastructure, hence enhancing liquidity and openness in the debt market. The changes made by the Saudi Exchange are a result of continuous effort to create a more sophisticated financial environment, therefore supporting the more general objectives of economic development listed in Vision 2030.

The latest changes of the Saudi Exchange highlight its dedication to help the Kingdom's economic development by means of effective debt financing systems, The exchange seeks to support Saudi Arabia's leadership as a major regional and worldwide hub for debt instruments by streamlining debt instrument issuing and improving market access, These initiatives not only improve the local debt capital market but also allow Saudi businesses and the larger economy to access necessary funding prospects, so building the foundation for sustainable economic development.

The changes the Saudi Exchange made to the debt instrument listing requirements show a calculated attempt to create a strong, adaptable, and easily available debt capital market, Reducing issuing criteria, implementing focused exemptions, and encouraging investor and issuer involvement helps the exchange create a basis for long-term financial sector resilience in the Kingdom. These changes complement Saudi Arabia's ambition for economic diversification and help to fulfill more general goals of making the nation appealing for international financial activity.

Saudi Exchange updates Debt Instrument Listing Rules to Boost Market

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