GCC country reduces three important costs

The Capital Markets Authority (CMA), the Saudi Arabian Stock Exchange (Tadawul) and the Debt Management Office (DMO) have unveiled a number of improvements in the fee and commission structure of the sukuk and obligations in order to develop capital market.

As a result of the enhancements, fees and commissions will be restructured for Sukuk and Bonds services, which will include key new fee and fee changes for issuers, members and investors. Sukuk and bond issuers will benefit from reduced file upload fees introduced by IPOs and Edaa's annual registry fees.

In addition, the amendments include the reduction of Tadawul's annual registration fees for the first issue and subsequent issues of Sukuk and Bonds, as well as the introduction of caps for annual registration fees of Tadawul for the first and subsequent shows. The DMO also announced the reduction of the nominal value of sukuk issued by governments from one million Saudi Riyals to one thousand.

Changes for market members and investors will include the deregulation of brokerage commissions and the removal of the required minimum commission ceiling. Trading fees on Tadawul and CMA were also reduced and CMA waives the trading commission on all types of investors, except for special cases.

Edaa will introduce annual custody fees for sukuk and publicly traded bonds to further support secondary market transactions, including financing activities such as securities lending and repurchase agreements to maximize the performance of securities. badets and recover the value of the badets.

Mohammed Al Kuwaiz, president of the AMC, said: "Improving the effectiveness of debt instruments is key to realizing the CMA's strategy of advancing the market for debt instruments. capital in accordance with the FSDP and Vision 2030 ".

"The restructuring of the fees illustrates this cooperation to stimulate the development of the debt market and encourage emissions and exchanges of sukuk and bonds," he said.

Fahad Al Saif, head of the Office of Debt Management (DMO), said: "The increase in fees will have a significant positive impact on the Sukuk and bond market and will encourage the issuance and the Negotiation of bonds and Sukuk as well as the activation of its secondary market "

"The increase in liquidity of the debt market will in turn contribute to the issuance of more diversified debt instruments and the introduction of new clbades of debt." badets for investors, "he added.

Further details on the announcement of the market are available on the Tadawul website.

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