Saudi Arabia seeks to expand financial links with Chinese markets

Saudi Arabia is seeking to expand financial connectivity with Chinese markets through four primary channels: equity markets, debt instruments, cross-listings, and capital raising. Mohammed Al-Rumaih, CEO of Tadawul, announced these objectives during the Select-Shanghai 2026 financial markets forum.

The initiative aims to connect Chinese investors with Saudi companies, provide Saudi issuers with new capital sources, and attract Chinese entities to list on the Saudi market. This follows recent regulatory shifts in the Kingdom that opened main stock markets to all categories of foreign investors by removing previous qualification requirements for non-residents.

In 2024, connectivity between the two markets expanded through the launch of two ETFs focusing on Saudi equities in the Shanghai and Shenzhen exchanges. Conversely, the Saudi market listed two ETFs tracking Chinese securities listed in Hong Kong, facilitating two-way capital flows.