A regulatory appraisal of the Saudi Stock Exchange: A study based on secondary data

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Abstract

This paper aims to appraise the Saudi Stock Exchange (Tadawul) with reference to various indicators like performance, structure, market size, share price index, etc. This study is motivated from the reform initiatives the Saudi Stock Exchange passes through in recent years because of the implantation of the nationwide strategy, Vision 2030 (Kumar, 2023). Using a published dataset, this study undertakes an appraisal mindset to highlight the performance of the market over 35 years’ time (from 1985 to 2019). The analysis follows various descriptive statistics reflecting market trends over the periods across selected parameters. The findings of the study imply that the market is improving in every dimension supporting the reform initiatives (Alsuhaibani et al., 2023). The incremental contribution of the current study is to inform policymakers about the response of the market towards various policy interventions. However, the study warrants careful attention of market regulators to observe the gradual changes so that it may receive policy attention as necessary.

Keywords: Saudi Stock Exchange, Tadawul, Vision 2030, Investors, Saudi Arabia

Authors’ individual contribution: Conceptualization — M.A.S.A.-F.; Methodology — M.A.S.A.-F. and N.C.S.; Validation — M.A.S.A.-F. and N.C.S.; Investigation — M.A.S.A.-F. and N.C.S.; Resources — M.A.S.A.-F.; Data Curation — M.A.S.A.-F.; Writing — Original Draft — M.A.S.A.-F. and N.C.S.; Writing — Review & Editing — M.A.S.A.-F. and N.C.S.; Visualization — M.A.S.A.-F. and N.C.S.; Supervision — M.A.S.A.-F.; Project Administration — M.A.S.A.-F.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: G10, O16

Received: 21.09.2023
Accepted: 04.07.2024
Published online: 08.07.2024

How to cite this paper: Al-Faryan, M. A. S., & Shil, N. C. (2024). A regulatory appraisal of the Saudi Stock Exchange: A study based on secondary data. Journal of Governance & Regulation, 13(3), 27–45. https://doi.org/10.22495/jgrv13i3art3