The respective stock exchanges of Saudi Arabia and Bahrain have signed an agreement designed to bring more connectivity and liquidity to the region’s securities market.
The Saudi-based Tadawul and Bahrain Bourse signed the agreement during the latest sitting of the Saudi-Bahraini Coordination Council.
The two exchanges have agreed to work on developing an integrated infrastructure to promote investment in both countries and to develop new products as well as improving the infrastructure in both markets.
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“This initiative is instrumental in reinforcing the ties of collaboration across the capital market sectors of the two countries,” said Sheikh Khalifa bin Ibrahim Al Khalifa, chief executive of Bahrain Bourse.
“It is a key part of concerted efforts to enhance inter-exchange cooperation and linkages within the GCC countries, resonating with the strategic objectives outlined for the development of the financial services sector during the 2022-2026 period.”
The Tadawul Group has signed a number of regional agreements in recent months in a bid to boost liquidity in Saudi Arabia’s capital markets.
In September, the exchange signed an MoU with the Shanghai Stock Exchange. It also struck similar agreements with the Muscat Stock Exchange and Hong Kong Exchanges and Clearing in the preceding months.