The Johannesburg Stock Exchange has signed a memorandum of understanding with the Saudi Tadawul Group, a stock exchange in Saudi Arabia, to create dual-listing opportunities. This will enable “client cross-selling engagements” for secondary market trade activities and support new issuance. These initiatives are expected to broaden the trading universe for investors and issuers. The MoU will also explore the feasibility of enhancing liquidity and access to capital markets in South Africa and the Kingdom of Saudi Arabia.
The JSE says this builds on the success of Africa’s first Shari’ah-compliant sustainability-linked Sukuk and the issuance of Rand-denominated Al-Ijarah Sukuk certificates by the South African government. JSE Group CEO Leila Fourie says the MoU also seeks to facilitate the development of new financial products and expedites listing processes that cater to the unique needs of both markets. Added to this, she says the signing of this agreement reaffirms its position as the leading stock exchange in Africa.
This collaboration opens up new opportunities for both exchanges and their clients by enhancing access to diversified markets and broader investment opportunities. Khalid Alhussan, CEO of the Saudi Tadawul Group said: “Our MoU with the JSE will unlock opportunities across listings, fintech, sustainability and more. We are committed to connecting with global capital markets, in line with our goal to advance the Saudi capital market and Vision 2030’s Financial Sector Development Programme.” The MoU will explore the feasibility of dual-listing stocks, enhancing the liquidity and access to capital markets in both South Africa and the Kingdom of Saudi Arabia and is being seen as a major breakthrough for investors.
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