Saudi bourse to open to foreign investors from June 15
Saudi Arabia‘s market regulator said on Thursday that the opening of the kingdom’s stock exchange to direct foreign investors will take place on June 15.
The Capital Markets Authority said in a statement that it will publish the final rules governing the move on May 4.
The opening of the Saudi market, the largest in the Gulf with a capitalisation of around $510 billion, is one of the most eagerly awaited economic reforms in the region in recent times.
With roughly the same value as all other Gulf Arab markets combined, and worth more than stock markets in either Russia, Malaysia or Turkey, the kingdom is also one of the last major global bourses to open itself for foreigners to directly invest in the exchange.
Fund managers believe tens of billions of dollars will eventually enter the country as a result.
In draft rules released last August before a period of public consultation, the CMA proposed a 10 percent cap on foreign ownership of the market’s value. Among other draft rules, a single foreign investor could own no more than 5 percent of any listed firm, while all foreign institutions combined could own no more than 20 percent.
Up to now, foreign investors have been restricted to buying Saudi shares indirectly through swaps or exchange-traded funds.
Source: ArabianBusiness – Saudi bourse to open to foreign investors from June 15
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