Morgan Stanley Saudi Arabia has secured approval to act as a market maker for 52 companies listed on the Kingdom’s stock exchange, the Saudi Tadawul Group announced. The investment bank’s market-making activities will span both the main and parallel (Nomu) markets, starting July 1.
Market makers play a key role in boosting market liquidity by continuously quoting buy and sell prices during trading hours. Tadawul’s framework sets strict requirements on maximum bid-ask spreads, minimum order sizes, presence rates, and minimum traded values for market makers.
For key main index stocks like Riyad Bank and Saudi Awwal Bank, Morgan Stanley will ensure at least 80% presence of orders, a minimum order size of SR250,000 ($66,660), a maximum spread of 0.65%, and a minimum traded value of 5%.
Other prominent names in the approved list include Saudi Arabian Mining Co., Astra Industrial Group, Etihad Etisalat Co. (Mobily), Al Rajhi Bank, Saudi Aramco, and STC, all subject to similar or slightly varied obligations.
For a separate set of companies, including ACWA Power, Saudi Electricity Co., and Ades Holding, Morgan Stanley must maintain 80% order presence, a minimum order size of SR150,000, and a maximum spread of 0.65%, but without a minimum value traded requirement.
For other securities, the requirements relax to a 50% order presence, minimum order sizes of SR75,000, and a wider maximum spread of 2%.
On Nomu, Saudi Arabia’s parallel market for smaller firms, Morgan Stanley will act as market maker with 50% order presence, minimum order sizes of SR50,000, and spreads up to 5%, with no minimum traded value required. This includes companies like Waja Co., Jana Medical Co., and Purity for Information Technology Co.
The move marks a major step toward enhancing liquidity and improving trading efficiency across Tadawul, aligning with Saudi Arabia’s Vision 2030 goals to deepen and diversify its capital markets.
Morgan Stanley previously received approval in March to market-make for eight other securities on Tadawul. The bank has operated in Saudi Arabia since 2007 and established its regional headquarters in Riyadh last November under the Kingdom’s HQ program, benefiting from incentives like a 30-year tax exemption and access to support services.