The Saudi Stock Exchange (Tadawul) and Boursa Kuwait have signed a deal to boost their capital markets and collaborate in several areas, including cross-listing of companies on the two bourses. 

Under the new memorandum of understanding (MoU), the two stock exchanges will explore collaboration opportunities in financial technology, products, sustainability, as well as environmental, social and governance (ESG) reporting and implementation.  

Tadawul and Boursa Kuwait are also looking to find ways on how to best encourage family businesses, government entities and small and medium enterprises (SMEs) to list on their respective exchanges. 

“Collaborations on organizing mutual events, investor relations initiatives, as well as cross-listing of companies on both exchanges were also included as part of the MoU,” according to a statement on Wednesday. 

The agreement was signed on the sidelines of the GCC Stock Exchange Summit in Riyadh. The deal is also expected to “synergise” the two bourses’ efforts in the areas of financial literacy and raising awareness among market participants. 

“The signing of the [agreement] is an indication of our long-term partnership to develop the market and enhance the investment environment locally and across the region,” said Mohammad Saud Al-Osaimi, CEO of Boursa Kuwait. 

“Through this MoU, we hope to broaden cooperation and knowledge transfer across the [GCC] markets.” 

(Writing by Cleofe Maceda; editing by Seban Scaria)