2019 Q1 Report En · Page 5

 
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Financial Sector Development Highlights 
Tadawul Announces the Date of Implementing the First 
Tranche of FTSE Russell and S&P DJI Indices Inclusion as an 
Emerging Market 
The first phase of Saudi Stock Exchange’s (Tadawul) inclusion into 
the FTSE Russell Emerging Markets (EM) index and S&P Dow 
Jones Emerging Market Indices’ (DJI) Global Benchmark Indices 
(BMI) was completed on March 18, 2019, based on the closing 
price of March 14, 2019. Tadawul’s inclusion in the FTSE Russell 
EM index is being undertaken over five tranches, with the first 
tranche having an inclusion factor of 10%. The inclusion in S&P 
DJI Emerging Market Indices will be completed in two tranches, 
with a 50% float-adjusted market cap (FMC) in the first tranche. 
Completion of the (03-2019) Issuance Under the Saudi 
Arabian Government SAR-Denominated Sukuk Program 
The Debt Management Office of the Ministry of Finance 
announced the conclusion of the (03-2019) issuance under the 
Saudi Arabian Government SAR-denominated Sukuk Program. 
The issuance comprised of two tranches of 10 and 15 years which 
were well received among investors, especially the latter tranche 
which constituted 61% of the total issuance. Orders were 
received from several current investors as well as new investors 
including, banks, insurance companies, Tadawul-listed 
companies and investment funds. These achievements are in line 
with the Financial Sector Development Program. 
CMA Grants a Financial Technology Experimental Permit 
(FinTech ExPermit) to FALCOM Financial Services Co to 
Create Equity Crowdfunding Platform 
The Capital Market Authority (CMA) issued a Financial 
Technology Experimental Permit (ExPermit) to FALCOM 
Financial Services Co to develop an equity crowdfunding 
platform. This will permit the company to undertake 
crowdfunding FinTech under which investors can participate in 
funding small and medium enterprises in exchange for shares. 
Apple Pay launched in Saudi Arabia 
The Saudi Arabian Monetary Authority (SAMA) announced the 
launch of Apple Pay, which will allow users to easily transact 
through IOS smartphones, increase payment options for users in 
Saudi Arabia and provide more digital solutions that facilitate 
payments and purchases. This forms a part of the “Drive towards 
cashless society” initiative of the Financial Sector Development 
Program. 
SAMA to Sponsor Training Program in Islamic Banking  
The Saudi Arabian Monetary Authority (SAMA) is sponsoring a 
training program in the field of Islamic Banking being conducted 
by the Financial Academy in Riyadh. The program is being held 
over a duration of two months and includes eight training courses 
in Islamic Banking focusing on the basic concepts and principles 
of the banks operating in the sector. These programs also 
introduce the legal environment of Islamic Banking in Saudi 
Arabia and developments and challenges facing Islamic Banking. 
SAMA Launches Regulatory Sandbox for Financial 
Institution's and FinTech’s 
The Saudi Arabian Monetary Authority (SAMA) has started
designing a Sandbox regulatory environment to understand and
assess the impact of new technologies in the financial services 
market in Saudi Arabia and to help transform the Kingdom into
an intelligent financial center, permitting domestic and 
international companies to test new digital solutions to be 
launched in the Kingdom in the future. Further, SAMA has 
clarified that the products and services currently being tested