Saudi Bourse CEO on Derivatives Market, Aramco IPO

The video discusses the opening of the Saudi capital market to foreign investors, highlighting the launch of a derivatives market and the anticipated growth in institutional demand. It addresses the impact of market pressures on emerging markets and the positive performance of the Tassie Index. The discussion includes the introduction of Saudi-based derivatives, risk management practices, and the potential impact of the Aramco IPO on market sentiment. Governance improvements and a healthy IPO pipeline are also covered, emphasizing the market's readiness for increased foreign participation.

What was a significant step taken to attract foreign investors to the Saudi capital market?

• Increasing local investor participation

• Launching the derivatives market

• Offering tax incentives

• Reducing trading fees

Which countries are the primary sources of institutional demand for the Saudi market?

• Brazil and Argentina

• US and UK

• Germany and France

• China and India

How does the Saudi market plan to manage risk for institutional investors?

• By offering insurance

• Through a full CCP clearing house

• By limiting foreign investments

• By reducing market volatility

What financial products are planned for launch by 2020 in the Saudi market?

• Cryptocurrencies

• Single stock futures and options

• Real estate investment trusts

• Government bonds

What is the potential impact of Aramco's IPO delay on the market?

• It will cause a market crash

• It will open pathways for other IPOs

• It will halt all other IPOs

• It will increase foreign investment

What is the current status of the IPO pipeline in the Saudi market?

• Non-existent

• Very limited

• Very healthy

• Moderately active

What governance aspect is emphasized for Saudi corporates listed in the market?

• Increased marketing

• Better disclosure and governance

• Higher dividends

• Lower taxes