[Economics] The commodity and petroleum derivatives exchange in Saudi Arabia

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https://www.msn.com/ar-ae/news/other/بورصة-السلع-والمشتقات-البترولية-في-السعودية/ar-AAWCZRQ?li=BBqrI8k

 

 

 

 

The Kingdom of Saudi Arabia is characterized as being the Qiblah of the Islamic world because of the presence of the Two Holy Mosques, and thus it deserved to be a center for global Islamic banking, and with the large investments directed to the Kingdom in light of the global system and the large infrastructure on which the Kingdom’s Vision 2030 focuses, under the leadership of Crown Prince His Royal Highness Prince Muhammad Bin Salman, in order to attract global funds, makes the need to establish an exchange or a platform for commodities and petroleum derivatives in Riyadh, the capital of Islamic banking. The importance of its establishment highlights a number of matters, the most important of which are the following:

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1. The absence of a global stock exchange characterized by Islamic banking in Islamic countries that accommodates financing and Murabaha deals with large billions of dollars.

2. A large number of banks and banks in the Gulf countries and others, if not all of them, implement their financing operations in huge deals through the London Metal Exchange, and they are not devoid of notes and legal warnings, because there is no stock exchange that accommodates large sums, which caused the implementation of financing operations for banks and banks outside the country. With the possibility of using it internally in the Kingdom.

3. Benefiting from the large commodities that exist in the Kingdom, as the Kingdom is considered one of the first countries in the world exporting petroleum and its derivatives, and dates, and these commodities were not utilized in the required manner, including the establishment of an international stock exchange characterized by its commitment to the provisions of Islamic Sharia, and the Malaysian government took the initiative to establish a stock exchange Palm oil or the Malaysian Commodity Exchange to benefit from palm oil, as Malaysia is the second exporting country for this product and a number of banks in the Kingdom deal with it, and among its founding team are Al Rajhi Bank and Kuwait Finance Bank from the Gulf countries.

4. Expansion of financing operations for banks and finance companies with the expansion of projects, the latest of which was the Saudi Central Bank’s amendment of some executive regulations for financing systems, with the high costs of financing from the London Metal Exchange due to the rise in commodity prices, which makes the urgent need to establish a local stock exchange that accommodates large financing operations at a lower cost .

5. The establishment of this stock exchange in the Kingdom, with its attention to Shariah controls, will be a great gateway and prelude to attracting the funds of banks and banks around the world to the great position that the Kingdom enjoys, and a substitute for international stock exchanges that focus on the traditional banking system in which the identity of the Islamic banking system has been obliterated, and an encouragement to international banks and banks. to participate in it.