The JSE has signed a memorandum of understanding (MoU) with Saudi Tadawul Group (STG), aimed at enhancing financial market collaboration and bolstering economic ties between South Africa and Saudi Arabia.

The agreement serves as a catalyst for growth, innovation and technological advancement in both markets, supported by a shared vision for future prosperity, says JSE group CEO Leila Fourie.

She says the MoU with STG will enable targeted client cross-selling engagements to foster secondary market trade activities and support new issuances, which broadens the trade universe for investors and issuers.

The MoU also seeks to facilitate the development of new financial products that cater to the needs of both markets. This builds on the success achieved with Africa’s first Shari’ah-compliant sustainability-linked Sukuk and the issuance of rand-denominated Al-Ijarah Sukuk certificates by the South African government.

Fourie comments that the MoU also brings to light shared interests in infrastructure investments, particularly in renewable energy projects.

The agreement will explore the feasibility of dual-listing stocks, which enhances liquidity and access to capital markets in both South Africa and Saudi Arabia.

For the JSE, this collaboration opens up new opportunities for clients to access diversified markets and broaden investment opportunities. In turn, STG CEO Khalid Alhussan says the MoU with the JSE will unlock opportunities across listings, fintech, sustainability and more.

“We are committed to connecting with global capital markets, in line with our goal to advance the Saudi capital market and Vision 2030’s Financial Sector Development Programme,” he explains.

For context, STG is a holding company of four integrated subsidiaries, including the Saudi Exchange, which is among the ten largest stock exchanges globally by market capitalisation.