Saudi Arabia leads in stock lending as short selling grows

September 25, 2024--Short selling requires stock lending
Lending fee revenue rising
Saudi companies dominate

Saudi Arabia is the Middle East's most active market for stock lending- an important part of the process of short selling-and demand from borrowers is likely to increase as more sophisticated investors start trading, new research suggests.

In stock lending, an entity-usually a broker or financial institution-pays a fee to borrow shares in a company from an investor in that company. The borrower uses the shares for short selling or other hedging strategies.

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Source: agbi.com