Saudi Exchange Launches Market Maker Framework for ETFs to Boost Liquidity

Thursday 5 February 2026 19:55

Saudi Exchange (Tadawul) announced today the launch of a new Market Maker Framework for Exchange-Traded Funds (ETFs), aimed at enhancing liquidity levels in the secondary market, narrowing bid-ask spreads, and improving price discovery efficiency in line with global best practices.

The regulatory framework sets out a series of obligations for market makers, classified into three distinct categories. The classification of each ETF will be determined through mutual agreement between the fund manager and the market maker.

The framework also outlines specific market-related requirements, including minimum order resting times, maximum allowable bid-ask spreads, and minimum order sizes, all designed to support orderly trading and market stability.

Commenting on the announcement, Mohammed Al-Rumaih, CEO of Saudi Exchange, said the launch of the ETF Market Maker Framework represents a significant step toward enhancing market efficiency and resilience, ensuring sustained liquidity in the ETF market, and strengthening investor confidence.

He added that the initiative aligns with Saudi Exchange’s ongoing commitment to advancing the Saudi capital market through infrastructure development and the promotion of transparency, reinforcing its position as a leading global financial hub.

The new framework is expected to improve secondary market liquidity, boosting the attractiveness and competitiveness of the Saudi ETF market for both local and international investors.