The Saudi Exchange (Tadawul) has unveiled four new indices, a significant move to fortify Saudi Arabia’s capital market. These indices cater to various investor strategies and act as crucial benchmarks for investment products, bolstering the Kingdom’s financial sector.
The Size Indices categorize companies based on market capitalization, offering a balanced representation. Tadawul Large firms comprise 70%, Tadawul Medium-sized companies make up 20%, and Tadawul Small companies account for the remaining 10%. Additionally, the Tadawul IPO Index tracks Main Market companies from the past five years. With a maximum constituent weight of 15%, these indices ensure fair market representation, benefiting local and foreign investors alike. Mohammed Al Rumaih, CEO of the Saudi Exchange, believes these indices will be valuable benchmarks for investment products and enhance the Kingdom’s dynamic capital market. This initiative underscores Saudi Arabia’s commitment to diversifying its financial sector, offering a spectrum of opportunities to investors.