Tadawul Boosts Post-Trade Reforms for Investors

Saudi Tadawul Group has rolled out a series of multi-phase upgrades to its post-trade and clearing systems, aimed at modernizing market infrastructure and drawing in more foreign institutional investors. The reforms span the Saudi Exchange, the Securities Depository Center (Edaa), and the Securities Clearing Center (Muqassa).

Among the key changes are flexible settlement cycles for negotiated deals, ranging from T+0 to T+5 across all securities traded on the exchange, giving buyers and sellers the freedom to agree on a settlement period. Buy-in trades will now settle on the same day (T+0). Muqassa has also extended its clearing coverage to all securities, including equities, sukuk, bonds, repos, and both exchange-traded and OTC derivatives, supported by a multi-asset clearing engine with enhanced margining and risk-management frameworks.

Additional post-trade services include the ability to rectify trades before settlement and to average or split price trades. Edaa has adopted ISO 20022 messaging, building on earlier ISO 15022 straight-through processing, to improve automation, reporting, and communication for custodians and institutional investors. The changes also bring daily position reporting, enriched reporting, and streamlined corporate-actions processing.

Wider access for foreign investors

From 1 February 2026, the Main Market of the Saudi Exchange will be open to all categories of foreign investors for direct investment, ending the Qualified Foreign Investor concept and its qualification requirements. The swap agreement framework for indirect exposure has been eliminated, and non-resident foreign investors may now hold listed shares through direct ownership under a unified foreign investment regime.

These regulatory changes are administered by the Capital Market Authority and implemented through the Saudi Exchange. Access remains through licensed local brokers and custodians. For the wider community, the reforms signal a deeper, more open capital market that could support job creation, investment, and economic diversification.

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