SHAHRUKH QURESHI
Group Chief Financial Officer
Saudi Tadawul Group’s strong financial performance in 2021 reflects our continued progress on our growth plans, in line with the objectives of the Financial Sector Development Program and Saudi Arabia’s ambitious Vision 2030.
Saudi Tadawul Group achieved a net income after zakat of SAR 587.7 Mn in 2021, a 17.42% year on year increase from SAR 500.5 Mn in 2020, driven by the strong performance of the Saudi capital market in 2021.
KEY FINANCIAL HIGHLIGHTS INCLUDE:
- Operating revenue increased by 8.01% from a year earlier, driven by solid growth in trading services, post trade services, and listing fees
- Gross profit increased by 8.79% year on year, reaching SAR 820.7 Mn in 2021 compared to SAR 754.4 Mn in 2020
- Operating profit increased by 12.64% to SAR 611.8 Mn, driven by an increase in gross profit against a more moderate increase in general and administrative expenses
- EBITDA increased by 13.10% year on year, reaching SAR 668.9 Mn
- Zakat expense decreased by 20.75% following a 2021 optimization of Saudi Tadawul Group’s financial assets
As a listed company, Saudi Tadawul Group is committed to providing shareholder returns with an attractive dividend payout ratio. Reflecting strong earnings, the Board proposed a dividend of SAR 3 per share for 2021, with earnings per share to SAR 4.90, up from SAR 4.17 in the prior year.
The resilience and attractiveness of the Saudi capital market was well demonstrated by the marked increase in both the number of listed companies on the Saudi Exchange’s Main Market and the average daily traded value (ADTV) of companies on the Main Market.
- There was a significant uptick in IPO activity in 2021, particularly in the second half of the year, reflecting the healthy market environment in the Kingdom and across the region.
- Higher liquidity from increased investor interest, alongside supportive initiatives from the Saudi government, helped drive a 7.5% increase in ADTV in 2021.
Saudi Tadawul Group’s transformation and IPO have established a robust platform for global growth, and the Group continues to execute on its strategy, enhancing the infrastructure of the financial market and delivering best-in-class services for all market participants.
Saudi Tadawul Group is well positioned to capitalize on the significant Saudi market transformation to accelerate its growth, strengthen its operational and financial performance, diversify its world-class offering across solutions and technologies, and broaden its client base in the Kingdom, the region and internationally.