Bahrain Bourse (BHB) and the Saudi Stock Exchange (Tadawul) have entered into a memorandum of understanding (MoU) to deepen and enhance existing co-operation.

Signed by BHB chief executive Fouad Rashid and Tadawul chief executive Adel Al Ghamdi, the MoU enables the two parties to share knowledge and expertise, open the door for people development, and explore future opportunities related to capital market development and policy alignment initiatives, said a report in the Gulf Daily News (GDN), our sister publication.

The signing ceremony was held at Tadawul's headquarters in Riyadh.

This comes a week after Tadawul signed a similar MoU with the Abu Dhabi Securities Market, signalling a greater focus from Saudi's national securities bourse to foster closer, more formalised, relationships with its Gulf neighbours.

"It will enhance the strong relationships between Saudi Arabia and Bahrain and will be a useful instrument not only to further the level of co-operation between the two exchanges, but will also open new business opportunities for market stakeholders in both countries," Rashid said.

"I look forward to a long and mutually beneficial relationship between the Bahrain Bourse and the Saudi Stock Exchange," he added.

"The co-operation envisaged under the MoU touches on a range of commercial and non-commercial aspirations that will not only benefit our respective exchanges, but will ultimately add value to market stakeholders on both platforms," Al Ghamdi said.

"The agreements, when acted upon in word and in deed, will establish a communication framework among signatories based on mutual trust and aligned interests.

"This would ultimately serve to create a unified and consistent voice for exchanges across the GCC, thereby enabling enhanced dialogue with policy makers and regulators, particularly on matters relating to capital market development," he added. - TradeArabia News Service