By Innovation-sa on December 6, 2017 in News

Saudi Arabia has signed a deal with US group Nasdaq to upgrade its stock market infrastructure by the end of 2020. The Kingdom has a rapidly growing stock market with a capitalization of $450 billion.

Kingdom’s stock exchange Tadawul said that Nasdaq technology would create a new central counter-party clearing system for the Saudi market by upgrading its current registry, depository, clearing and settlement infrastructure that is more than 16 years old.

While the strive to achieve Crown Prince Muhammed bin Salman’s ambitious “Vision 2030” continues, the Kingdom is rapidly developing its stock market to attract foreign investments as it seeks to diversify the economy beyond oil revenue.

The deal with Nasdaq to rebuild the Kingdom’s central securities depository is also part of Saudi Arabia’s efforts to tackle challenges before the forthcoming listing of 5 percent of oil giant Saudi Aramco.