The Saudi financial market aims to launch options contracts for all types of investors during the second quarter of this year, according to Mohammed Al-Rumaih, CEO of the Tadawul Company, which operates the Saudi Stock Exchange.
Al-Rumaih added to Bloomberg Sharq, in the meeting that was held on the sidelines of the Saudi Stock Market Forum hosted by Riyadh, that the current target is to offer options contracts on the shares of 4 to 5 companies, provided that they are gradually increased.
And options contracts, according to which the right to buy or sell shares is purchased at a predetermined price during a certain period of time, and it can be traded through the options trading platform.
Gulf stock exchanges, especially Saudi Arabia, are witnessing a great momentum for offerings, supported by strong economic growth in light of high oil prices, as part of measures taken by countries to diversify their economies.
The head of the Saudi Capital Market Authority, Muhammad bin Abdullah Al-Quwaiz, announced the day before yesterday, Sunday, that the authority had approved the listing of 23 companies on the Saudi Stock Exchange, adding that the number of applications awaiting the approval of the authority for listing exceeded 75 applications.
