Saudi Exchange Boosts Small, Mid-Cap Stock Liquidity

The Saudi Exchange has expanded its market-making incentive program to deepen liquidity across equities, derivatives and exchange-traded funds, part of a wider push in 2026 to make the market more active and accessible to investors.

Under the framework, market makers receive incentives only after meeting defined obligations, and the Exchange reviews and republishes those obligations and incentives every six months, on 1 January and 1 July. The Exchange may also amend terms at any time based on market conditions.

How the incentives work

For equities, published examples include trading commission discounts, and for some liquidity groups an additional listed-security incentive, with the exact percentage tied to the liquidity group. For MT30 Index Futures (SF30), current terms show a 100% trading commission discount, a minimum size of three lots, a maximum spread of 10 ticks (5.0 index points), and set order-presence windows during the trading session.

In February 2026, the Exchange launched a separate ETF market-making framework, effective 8 February 2026, requiring market makers to provide continuous quotes during the open session while their compliance is monitored before incentives are granted. A reported ETF case in May 2026 set obligations of 80% minimum order retention, a SAR 50,000 minimum order size, and a 2% maximum price difference. A reported equity case in July 2026 showed 50% minimum order presence, a SAR 50,000 minimum order size, and a 2% maximum price spread.

Why it matters: better liquidity typically means narrower spreads and easier buying and selling, especially for smaller and mid-sized listed companies. The moves also come alongside 2026 market-access changes that removed the old Qualified Foreign Investor framework and opened direct access to all foreign investors — a shift expected to support trading activity across the market.

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