The banking sector is the most attractive to foreign investment on the Saudi Stock Exchange

With the Saudi equity warning to receive flow from foreign investors that will be allowed to own majority classes in local businesses, the banking sector will be the biggest winners of this step, as foreign investors will go to high liquidity businesses and the great weight in the market, and not ‘speculative business’, according to the financial analyst. She cites the strong movement on the shares of Al -Rajhi, Al -Ahly Bank, the Bank of Development and the Arkan House in the first session after she intends to increase the upper boundary of the ownership of foreigners, which has risen in large relationships, as proof of this tendency. Also read: After their investments have jumped three times during a decade. What does it mean to liberalize the roof of foreigners in the Saudi market? At the end of yesterday’s trading session, the market value of foreign properties in the included banking sector reached 147 billion Riyals, representing about 34% of the foreign investment in the Saudi financial market, and this is the highest among the sectors. At corporate level, the list of the highest in terms of the market value of the ownership of foreigners is issued by Al -Rajhi Bank and Al -hly Bank, then comes oil and energy giant Aramco. Openness improves the market field over global indicators, Saudi Arabia is preparing to take an unprecedented step by allowing foreign investors to own majority interest in local businesses, in a radical transformation of organizational policies for years. During a decade of gradual openness, foreign investment in the Saudi financial market increased more than three times from approximately 99 billion Riyals in June 2015, the date of the onset of qualified foreigners to circulate by the end of last week, to 430.6 billion Riyals, according to the data trading and the Saudi trading group. The Saudi financial market forms about 4% of global indicators such as Photsi, Rice and MSCI, and with any increase in the percentage of 49% foreigners to higher levels, the market weight will change within these indicators, opening the door to new cash flow. Salem believes that these amendments and measures taken by the Saudi Capital Market Authority, the market with the requirements of international investors want to harmonize and keep up with the standards of global markets, to qualify as one of the largest markets in the region and with a global impact.