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Saudi bourse owner’s profit dips 24% to $28m in Q2 2023

Crowd, Person, Adult Saudi Tadawul Group
Saudi Tadawul Group and the Egyptian Exchange signed an MoU to enhance joint cooperation efforts in February

Net profit at Saudi Tadawul Group Holding Company, the holding company of the Saudi stock exchange, fell 23.6 percent year on year to SAR 105.2 million ($28.05 million) in the second quarter, down from SAR 137.7 million.

The lower profit was driven by a 15.5 percent year-on-year drop in operating revenue to SAR 252 million, as a result of a fall in trading and post-trade revenues.

Operating expenses grew 5.2 percent year on year to SAR 168.1 million, due to the consolidation of Direct Financial Network Company’s (DirectFN) financials following the acquisition of a 51 percent stake by Tadawul subsidiary Wamid.

Net profit fell 29.57 percent to SAR 196 million in the first half of 2023, compared with SAR 278.3 million in the year-earlier period, as operating revenue declined 21.8 percent year on year and operating expenses increased 9.5 percent. 

“During the first half of 2023, we continued to enhance the capital market in Saudi Arabia, building a sophisticated infrastructure for domestic and international investors,” Tadawul CEO Khalid Al Hussan said in an investor presentation. 

He said the DirectFN acquisition would diversify revenues and strengthen the technology platform in line with the company’s growth strategy, adding the investment underpins its ambition to become a global investment hub. 

The attractiveness of the Saudi capital market remains strong, reinforced by the growing range of products and services and a healthy pipeline of companies seeking to list, Al Hussan added.

In February, Saudi Tadawul Group signed memorandums of understanding with the exchanges of Qatar, Egypt and Singapore to aid joint listings and improve collaboration.

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