Tadawul, the Saudi Stock Exchange, has granted approval for Morgan Stanley Saudi Arabia to operate as a market maker for eight securities on both its main trading platform and the parallel index, known as Nomu.

This strategic decision aims to enhance market liquidity and improve price efficiency in line with established regulations and procedures.

Among the securities on the main index, Morgan Stanley will serve as a market maker for Arabian Internet and Communications Services Co. In this capacity, the firm is required to ensure a minimum order presence of 80 percent, with a minimum order size of SR150,000 (approximately $39,982), while maintaining a maximum spread of 0.65 percent and a minimum value traded of 5 percent.

The firm will also provide market-making services for Electrical Industries Co., which includes similar obligations regarding order presence, minimum size, and spread.

For this company, a minimum order size of SR75,000 is specified, alongside identical trading conditions concerning minimum order presence and maximum spread.

Additionally, Elm Co. has been included in the approved list of securities, with Morgan Stanley adhering to the same trading parameters set for Electrical Industries Co.

For the Co. for Cooperative Insurance, the requirements are consistent, with stipulations of an 80 percent minimum presence of orders, a minimal order size of SR150,000, a maximum spread of 0.65 percent, and a minimum value traded of 5 percent.

On the Nomu index, Morgan Stanley Saudi Arabia will serve as a market maker for National Environmental Recycling Co., International Human Resources Co., Almuneef Co. for Trade, Industry, Agriculture, and Contracting, and Aqaseem Factory for Chemicals and Plastics Co. Each of these companies will have Morgan Stanley ensuring a minimum order presence of 50 percent and maintaining a minimum order size of SR50,000, along with a maximum spread of 5 percent, with no minimum value traded requirement.

The involvement of Morgan Stanley Saudi Arabia in market making is anticipated to further contribute to increased liquidity and create a more efficient trading environment, thus supporting the development of the Kingdom’s capital market.

In a related development, the investment bank received approval in November to set up its regional headquarters in Saudi Arabia, highlighting the nation’s efforts to attract international investment.

This move aligns with Saudi Arabia’s regional headquarters program, which provides various incentives to businesses, including a 30-year exemption from corporate income tax and withholding tax on headquarters activities, in addition to access to discounts and support services.

Morgan Stanley initially entered the Saudi market in 2007, establishing an equity trading unit in Riyadh, subsequently following this with the launch of an equity fund in 2009.