time to read 1 minutes

Tadawul wants more action!MENA

Tadawul wants more action!

Investing on Saudi Arabia’s Tadawul stock exchange just got more interesting! As of last Thursday, Tadawul investors are now permitted to sell stocks short as well as lend out their shares to be sold short.

Tadawul said the change was made to develop a regulatory environment consistent with the international best practices and to provide a “motivating and competitive atmosphere with high reliability.” Tadawul also stipulated that total net short positions of stocks on the exchange must not exceed 10% of the free float.

why it matters
The Tadawul has always been a leader in the MENA region. In 2017, it was upgraded from a “standalone market” to an “emerging market” and has earned a 2.8% weighting in the MSCI Emerging Markets Index. It's only a matter of time before the exchange is considered a "developed market."