Tadawul Group’s 5-yr plan prioritizes data monetization, securities diversification: CEO

Khalid Al-Hussan CEO of Saudi Tadawul Group

Saudi Tadawul Group prioritizes investing in data monetization, diversifying the range of securities offered, and enhancing communication in its growth strategy for the next three to five years, said CEO Khalid Al-Hussan.

At a session during the Saudi Capital Market Forum (SCMF) 2024, Al-Hussan said the excellent performance of financial market infrastructure companies (FMIs) involved data monetization.

He highlighted the significant opportunity for such companies to diversify operations and expand business lines through investments in this sector.

The success of such investments has been evident in advanced markets, which started investing in data monetization earlier. The revenue mix today constitutes between 30% and 50%, or higher, of the revenues of FMIs in these markets.

Al-Hussan stressed the critical importance of investment diversification not only at the individual portfolio level but also at the entire market level. Markets solely offering one type of securities showed volatility, and concentration on a single type exposes them to risks. Diversification, on the other hand, consistently leads to market resilience.

Highlighting the interconnected nature of financial markets today, Al-Hussan noted that markets do not operate in isolation as investors and issuers have access to multiple markets.

Furthermore, companies focusing on communication and providing appropriate infrastructure are in a more advanced stage compared to their counterparts in other markets, according to the CEO.