Saudi Arabia plans to open its $530 billion stock market to foreigners, a move that will allow the Middle East’s biggest economy to attract more international investments and help reduce its dependence on oil revenue.
The kingdom is among the last of the big markets globally to limit international access, but was expected to lower or remove such restrictions as it rolls out plans to spend hundreds of billions of dollars in the domestic economy to build infrastructure and provide employment for its people.
The country’s Capital Market Authority was given the green light to allow foreign financial institutions “whenever they see fit” to buy and sell shares in the market and “in accordance to regulations set by the CMA in this regard,” the official state news agency reported.
In 2008, the kingdom began allowing foreign investors indirect access to the market through swaps, but it has hesitated to open the market fully to foreigners, and the topic has been long discussed.
Foreign investors have been waiting eagerly for more access to the region’s biggest and most liquid market, especially after two of its much smaller peers, Qatar and the United Arab Emirates, were promoted to emerging status by index compiler MSCI Inc. in May.
Source: MarketWatch
