Middle-east Arab News Opinion | Asharq Al-awsat

Foreign Investors’ Ownership in Saudi Share Market Likely to Rise 100% in Ten Months | ASHARQ AL-AWSAT English Archive 2005 -2017
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Using EFTPOS (electronic funds transfer system at point of sale) in a store in Sidney, Dec. 11, 2012. REUTERS/Tim Wimborne

Riyadh- Following Saudi Arabia’s decision to relax restrictions on foreign investment in the local market, experts forecast that foreign investors’ ownership will pick up 100% by the second half of 2017 knowing that it now represents 4.1% of the market value in the Saudi share market.

Economist Dr.KhalidYahia told Asharq Al-Awsat that the coming two quarters will witness increased investment opportunities in the Saudi share market. “Oil prices might continue to see enhancement and this will positively affect enlisted companies’ profits, especially on the level of banks, cement and petrochemicals’ sectors”, Yahia said. Expert Fahd al-Mashari told Asharq Al-Awsat that relaxing restrictions will increase investments 100% by next ten months.

In the same context, Tadawul announced that foreign purchasing via direct foreign investment reached USD1 million (SAR3.8 million) in last week’s session 7-11 August.

As of 4 September the new restrictions and conditions will be effective; foreign financial institutions will be infront of a promising chance to invest more in Saudi local share market.

The regulations consist of 24 items on procedures, requirements, obligations and conditions for qualified foreign investors to register in the Saudi Capital Market and invest in enlisted securities.

More categories are now included in the qualified foreign financial institutions such as public authorities and state affiliated institutions. Also, the foreign investor is now permitted to deal with a head of a Saudi or non-Saudi portfolio to manage his investments in the Saudi capital market.

The Capital Market Authority (CMA) announced in a news conference held on Sunday that it will soon publish an updated list of the frequently asked questions with regards to the organizational regulations of qualified foreign financial institutions investment in enlisted securities. CMA iterated that new regulations will be applicable on 4 September.