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RIYADH: ������Ƶ has introduced a new financial instrument that gives investors in the Kingdom direct access to shares of foreign companies listed on global markets. 

The Saudi Exchange on July 7 launched its first Saudi Depositary Receipts, allowing international equities to be traded locally in Saudi riyals. 

The move marks the debut of depositary receipts in the Kingdom’s financial market and is seen as a strategic leap toward reinforcing Riyadh’s position as a global financial center, in line with the Financial Sector Development Program and broader Vision 2030 ambitions. 

In a release, Tadawul stated: “SDRs are highly liquid and flexible, enabling issuers to transfer securities between the Saudi financial market and foreign markets by converting the SDRs into shares in the foreign market, thus enabling the company’s shares to be traded on two different financial markets.” 

It described the launch as “a pivotal step toward consolidating the Kingdom’s position as a global financial center.” 

This development is not merely a technical upgrade; it reflects a broader strategic effort to modernize and globalize ������Ƶ’s capital markets. 

Since the launch of Tadawul Group’s post-initial public offering transformation, the Kingdom has introduced a series of reforms aimed at enhancing market sophistication and accessibility.  

These include inclusion in global emerging market indices such as MSCI, FTSE, and S&P Dow Jones; the rollout of derivatives trading; the simplification of Qualified Foreign Investor frameworks; and the acceleration of sector-diverse IPO pipelines. 

The introduction of SDRs builds on this momentum by bridging local and international investment landscapes — effectively bringing Wall Street- or London-listed equities to Riyadh’s trading screens. 

What are SDRs and why do they matter? 

A depositary receipt is a financial instrument that represents shares in a foreign company but is traded on a local exchange in the domestic currency. 

In the case of SDRs, this means investors in the Kingdom can gain exposure to foreign firms — such as global technology giants, industrial leaders, or energy companies — without needing to open a brokerage account abroad. 

Unlike traditional cross-border investing, SDRs enable seamless trading, clearing, and settlement through Tadawul, all denominated in Saudi riyals. 

This makes it easier for local investors to access global markets. They can buy international shares through a familiar domestic platform and trade using local brokers. It also helps them diversify their portfolios without dealing with foreign accounts. Most importantly, they remain under the protection of ������Ƶ’s legal and regulatory framework. 

JEDDAH: ������Ƶ’s upcoming King Salman International Airport in Riyadh will curb construction-related emissions by using biodiesel, aligning with the Kingdom’s broader net-zero ambitions. 

The developer of the flagship project, backed by the Public Investment Fund, has signed a memorandum of understanding with Biofuel Co. Ltd. to supply B100 biodiesel as a direct alternative to fossil diesel during the construction phase, the Saudi Press Agency reported. 

The agreement supports ������Ƶ’s environmental goals, including its pledge to achieve net-zero emissions by 2060 under the Saudi Green Initiative. It also reflects the Kingdom’s efforts to promote cleaner energy use across major infrastructure projects. 

In an exclusive comment to Arab News, Abdullah Al-Otaibi, CEO of Biofuel, said the MoU aims to facilitate the use of biodiesel throughout the airport’s construction phase. 

“This step reflects Biofuel Co.’s commitment to sustainability and innovation as we work to establish a new benchmark for smart infrastructure projects,” he said. 

Al-Otaibi added that the achievement would not have been possible without the unwavering support of the Kingdom’s leadership, which has paved the way for realizing the company’s ambitions under Saudi Vision 2030. 

Under the agreement, Biofuel Co., the country’s first and only producer of standard-compliant biofuel, will supply B100 biodiesel to support construction activities and help reduce the project’s carbon footprint in line with national climate goals. 

Citing Marco Mejia, acting CEO of King Salman International Airport Development Co., the SPA report said that “the cooperation represents a practical step toward building an airport that adheres to the highest standards of environmental sustainability and reflects the adoption of alternative energy solutions that keep pace with global trends in reducing emissions.” 
 
It added: “He highlighted the importance of qualitative partnerships to achieve these goals, in conjunction with the objectives of the Kingdom’s Vision 2030 toward a more sustainable future.” 

Announced in 2022, King Salman International Airport is a major infrastructure project aimed at positioning Riyadh as a global transportation and logistics hub connecting East and West. The development spans 57 sq. km and will feature six parallel runways and 12 sq. km of support facilities, including residential, commercial, recreational, and logistics zones. 

The airport is designed to run on renewable energy and targets LEED Platinum certification. It is expected to accommodate up to 100 million passengers annually by 2030 and 185 million by 2050, while handling 3.5 million tonnes of cargo each year. 

The project aligns with ������Ƶ’s Vision 2030 goals to diversify the economy by enhancing trade, tourism, and connectivity. It is projected to contribute SR27 billion ($7.2 billion) to non-oil gross domestic product and create over 100,000 jobs by mid-century.