NSX Limited (ASX:NSX) is pleased to advise that NSX and Ajlan have entered into an MOU with the purpose of establishing a Second Exchange in Saudia Arabia to be known as the KSA Metals and Mining Exchange.
MOU to explore the establishment of the KSA Commodities and Securities Exchange Saudi Arabia (CSXSA)
1. MOU signed with Ajlan & Bros Holding Group Company ("Ajlan") trading as Abilitii.
2. Enter into discussions concerning the establishment of a regulated exchange in the Kingdom of Saudi Arabia ("Second Exchange").
3. The Second Exchange will seek to trade a variety of financial products with an initial focus on mining Issuers and metals (commodities) trading in the Kingdom of Saudi Arabia.
4. Tapping pent up demand for issuer listing and commodities trading.
The Core objective is to explore the establishment of a second regulated exchange that allows for trading by participants of financial products including securities, bonds, warrants, exchange traded products, derivatives, and commodities, in the Kingdom of Saudi Arabia.
The initial objective is to focus on the financial products associated with Mining issuer securities and Metals (Commodities) exchange.
Secondary objectives include expanding the financial products into other areas where licensing permits.
The parties will work towards delivering a business plan, agree on a financial model and agree on potential joint venture agreement terms.
If the arrangements under the MOU are successful it would be expected that a Joint Venture agreement would be entered into which will be capitalised appropriately to do all things necessary to acquire a Market Operator Licence in the Kingdom of Saudi Arabia, implement rules, procedure, governance, trading, clearing and settlement systems and build connectivity with participants and information vendors.
The parties believe that there is an untapped pool of potential issuers and those wishing to trade commodities on the exchange.
NSX, via its wholly owned subsidiary, National Stock Exchange of Australia, will provide knowhow in the management of technology, admissions, compliance, and operations of a regulated securities exchange to the joint venture should that eventuate after the MOU exploratory work is complete.
Abilitii will provide management, government and market contacts and capitalisation to the joint venture should that eventuate after the MOU exploratory work is complete.
Managing Director, NSX Limited John Karantzis stated "We are excited by this venture, and the opportunity to develop a commodities and securities exchange in the Kingdom of Saudi Arabia. We are honoured to be signing this MOU with our partners Abilitii, which is a first step in NSX plans to provide additional exchange services in other parts of the world to enhance its business operations. NSX currently provides services to SPX in Fiji, and has previous experience with running various trading markets."
Mr Mohmmed,Deputy Chairman, Abilitii, stated that "Abilitii is honoured with this agreement, which aims to support the program's strategy to transform the Kingdom into a leading industrial power, increasing the economic impact of the mining sector and the sustainability of its growth, and creating an attractive investment environment, in a way that contributes to the goals of 2030 Vision. Mr. Mohammed stressed that "Abilitii" is aiming to increase its investments in these promising sectors."
Ajlan & Bros Group (Abilitii) is one of the largest private sector conglomerates in the Middle East region, employing over 10,000 people in more than 10 countries and across 70 companies. Established originally as a textile business in 1979 - a segment where it remains a dominant player in the Middle East region - the Group has expanded speedily into real estate and is now among the top 5 real estate companies in the Kingdom. In line with the Vision 2030, the Group has now embarked on a significant diversification program.
The Group aims to become a leader in selected sectors by building businesses in partnership with international firms to achieve a dominant regional position, these sectors include infrastructure, water, power, petrochemicals, ports, airports, mining, technology, food, industrial manufacturing, education, healthcare, entertainment, hospitality, financial services, logistics.
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