Riyadh- Saudi share market has become an investment destination that attracts foreign capitals, following the kingdom’sdecision to relax imposed conditions and restrictions on foreign financial institutions that are willing to invest in the local share market.
These updates coincide with the Board of Capital Market Authority issuing organizational regulations for qualified foreign financial institutions investing in enlisted securities.
Starting 4 September, foreign financial institutions will be enjoying a bigger chance to invest in the Saudi share market as the new conditions become effective.
The Capital Market Authority will publish an updated list of the frequently asked questions with regards to the organizational regulations, according to a statement issued on Thursday. 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 permitted to deal with a head of a Saudi or non-Saudi portfolio to manage his investments in the Saudi capital market.
In a related matter, the Saudi share market index dropped 0.5% in Thursday’s session, closing at 6,326 points thus losing 29 points. Moreover, trading value reached USD779 million (SAR2.9 billion).
Furthermore, Etihad Atheeb Telecom Co. “GO” announced that its accumulative deficit reached around USD293 million (SAR1.1 billion) end of July 2016, equal to 73.71% of the capital. The company added that it achieved exceptional profits worth USD5.8 million (SAR22 million) resulting from the difference between assets and liabilities withdrawn by a top importer. Accumulate deficit declined end of the year, knowing that in the first four months only it totaled USD15.2 million (SAR57.16 million).