2019 Q3 Report En · Page 5

 
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Financial Sector Development Highlights 
Tadawul completes full inclusion in MSCI and S&P Dow 
Jones Emerging Markets Indices, and Fourth Phase of Saudi 
FTSE Russell Secondary Emerging Market Index 
The Saudi Stock Exchange (Tadawul) completed Saudi Arabia’s 
full inclusion into the MSCI Emerging Markets Index with the 
successful implementation of the second and final tranche of 
index inclusion, which brings the Kingdom’s weighting to 2.8% 
of the index’s total market capitalization. 31 Tadawul-listed 
companies are included in the MSCI Emerging Markets Index. 
Where the implementation of the first tranche took place in May 
28, 2019 and implementation of the second and final tranche 
occurred on August 28, 2019. The Saudi market was fully listed 
on the S&P DJI on September 23, 2019, and the first phase of the 
upgrade of the Saudi market to an emerging market on March 
18, 2019 was 50%. The fourth phase of the FTSE Russell 
Secondary Emerging Markets Index was implemented on 
September 23, 2019. The FTSE announced in March 2018 that 
the Saudi market was included in the Emerging Markets 
secondary market after it met the requirements, and it will take 
place in five tranches due to its large size. The last phase of this 
inclusion ends in March 2020. Saudi Arabia is estimated to have 
an index weight of 0.25% in the FTSE Global Equity Index Series, 
and 2.7% in the FTSE Emerging All Cap Index. 
"Council of Ministers" Approves the Amendment of the 
Capital Market Law 
The Council of Ministers approved, during the meeting chaired 
by the Custodian of the Two Holy Mosques King Salman bin 
Abdul Aziz on Tuesday 17-9-2019, amending the Capital Market 
Law. The proposals to amend the system were based on the 
objectives and responsibilities of the Authority, the initiatives 
entrusted to achieve the goals and directions of the Kingdom's 
Vision 2030, the Financial Sector Development Program, and the 
Financial Leadership Program, guided by international best 
practices and legislations. The amendments will aid in 
developing capital market infrastructure institutions and 
reducing risks, in addition to enabling new classes of securities 
and attracting foreign investment to the capital market. This will 
enable the Authority to authorize the capital market 
infrastructure institutions, which include the Exchange, the 
Depositary Center and the Clearing Center. This will also lead to 
regulating the securities clearing center and activating its role in 
performing duties and obligations within the capital market 
infrastructure institutions. 
Edaa Launches Paying Agent Service for All Market 
Participants 
The Securities Depository Center Company (Edaa) announced 
the launch of the “Paying Agent” service, as an optional service 
for listed companies and funds. This service is part of Edaa’s 
strategic plans to provide innovative and efficient solutions for 
all market participants, in line with international standards. Edaa 
aims to provide issuers with comprehensive services to facilitate 
completing procedures related to dividends distribution to 
ensure prompt cash transfers and reduce costs for issuers. 
SAMA: The Success of Online “Bank Accounts Opening” and
“Know Your Customer” Update 
The Saudi Arabian Monetary Authority (SAMA) has announced 
the success of the two experiments; opening bank accounts for 
individuals and Know Your Customer's data update both were 
performed online. This was achieved within the newly 
introdu