VCFC becomes first international fintech business licensed in Saudi Arabia

eWTP Arabia Capital is proud to announce that Valuable Capital Financial Company (VCFC), one of its portfolio companies, has secured final approval from the Capital Market Authority of Saudi Arabia (CMA) to offer dealing, custody, and advisory services within the Kingdom. This marks a significant milestone as VCFC becomes the inaugural licensed international fintech company to provide online brokerage and trading services in Saudi Arabia.

This development unfolds against the backdrop of growing collaboration between the capital markets of Saudi Arabia, China, and Hong Kong S.A.R. In September, Tadwawul Group and the Shanghai Stock Exchange signed a pivotal agreement aimed at bolstering cooperation in dual-listings, financial technology advancement, environmental, social, and governance (ESG) initiatives, and data exchange. Furthermore, earlier this year, Tadawul Group and the Hong Kong Exchanges and Clearing Limited (HKEX) revealed that Tadawul is now a Recognized Stock Exchange (RSE). This designation enables companies with primary listings on the Saudi Exchange’s Main Market to apply for a secondary listing in Hong Kong.

Leveraging this license, VCFC will launch its trading platform during the Future Investment Initiative (FII) 2023, which will initially connect Saudi investors to Tadawul and US stock markets. Subsequently, this platform will extend its reach to exchanges in China, Hong Kong, Malaysia, Singapore, and other global markets.

Professor Sun Dong, Hong Kong’s Secretary for Innovation, Technology, and Industry, lauded this achievement, underlining the potential of Web3 to shape the future of finance and commerce. He affirmed the HKSAR Government’s commitment to fostering a conducive environment for fintech companies to flourish.

Chen Weiqing, the Chinese Ambassador to Saudi Arabia, and Christopher Hui, the Secretary for Financial Services and the Treasury of Hong Kong, extended their congratulations on this milestone.

Reflecting on this announcement, Jerry Li, Founding Managing Partner of eWTP Arabia Capital, emphasised Hong Kong’s emergence as a vibrant fintech hub over the last decade. He expressed a strong belief in VCFC’s platform’s capacity to address an underserved segment of the local stock market ecosystem.

Jess Cheung, CEO of VCGL and a board director of VCFC, echoed this sentiment, highlighting the company’s dedication to developing the financial infrastructure that will underpin increased capital flows among China, Hong Kong S.A.R, and Saudi Arabia. She expressed gratitude to the Saudi authorities and eWTPA for their assistance in navigating local regulatory and market requirements.

VCFC, established in February 2022, operates as a 50/50 joint venture between eWTPA and Valuable Capital Group Lt (VCG), a technology-driven financial solution provider serving millions of retail investors and over 500 institutional investors and corporate clients across the globe. While headquartered in Hong Kong S.A.R, VCG has a global presence, including operations in Mainland China, Hong Kong SAR, Malaysia, Singapore, New Zealand, and the United States. In addition to eWTPA, VCG enjoys support from strategic investors, including Sina Group, the controlling shareholder of Weibo, often referred to as the “Twitter of China.”