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The Saudi Exchange (Tadawul) has approved Morgan Stanley Saudi Arabia to act as a market maker for three companies—Jazan Development and Investment Co. (6090), Salama Cooperative Insurance Co. (8050), and LIVA Insurance Co. (8280)—starting July 15. The approval mandates specific obligations, including maintaining a 50% minimum order presence, SAR 50,000 minimum order size, and a 2% maximum price spread. Separately, Tadawul approved Morgan Stanley’s request to terminate market-making activities for Alandalus Property Co. (4320), Tourism Enterprise Co. (4170), and Saudi Vitrified Clay Pipes Co. (2360), effective July 15, 2026. This decision aligns with Tadawul’s efforts to enhance liquidity and market efficiency for selected equities.
For traders, this regulatory update impacts liquidity dynamics in the Saudi equity market. Market makers like Morgan Stanley play a critical role in narrowing bid-ask spreads and improving price discovery for the listed stocks. The termination of market-making for three companies may reduce liquidity for these assets, potentially increasing volatility. Investors should monitor trading volumes and price movements in the affected stocks to assess the practical implications of these changes.
The approval reflects Tadawul’s ongoing strategy to attract international institutional participation in the Saudi market. For Gulf investors, this could signal improved market infrastructure, which may attract foreign capital. However, the termination of market-making for certain stocks highlights the need for caution, as reduced liquidity could affect trade execution. Key assets to watch include the six listed companies, with particular attention to the newly approved and terminated market-making activities.
