The Capital Market Authority is investigating opinions to open the Saudi Stock Exchange for all foreign investors

During the current month, the Saudi Capital Market Authority will investigate the opinions of stakeholder, involved and stock exchange participants regarding the opening of the main market for all categories of foreign investors who do not live and enable them to invest in direct investment, according to a statement issued by the authorities today. The proposed project is in line with the gradual approach of the market to open the market, through previous measures, and supplementary stages that will be followed to improve the liberalization of the financial market, and make it an international market that attracts more foreign capital, according to the statement, which also noted that the project could expand and diversify the termination of the volume of investment. A radical transformation in the Saudi market The new trend is a radical shift of organizational policies for years, and Abdulaziz Abdul Mohsen bin Hassan, a member of the Council of Directors of the Capital Market Authority, revealed in an interview with “Bloomberg” that the authority is close to Businesses, which are currently 49%implementation before the end of the year. Analysts believe that the upcoming decision can open the door for large foreign flow. According to the estimates of “JB Morgan”, raising the percentage of up to 100% flow of $ 10.6 billion could attract. See also: After their investments have jumped three times during a decade. What does it mean to liberalize the roof of foreigners in the Saudi market? The project to open the main market will cancel all categories of foreign investors who do not live, in the event of approval, the concept of the qualified foreign investor in the main market, which allows all categories of foreign investors to enter the market without complying with the qualification requirements, in addition to using the exchange agreements that are used as an option to obtain economic benefits. Not investment. Directly in shares listed on the main market. The ownership of foreign investors was the ownership of international investors at the end of the second quarter of this year more than 528 billion Riyals, while foreign investment in the main market recorded about 412 billion Riyals in the same period, which achieved a 471% growth compared to 72 billion Riyals at the end of 2015. Investors include who live in one of the Gulf States, or those who previously lived in the Kingdom or in one of the countries of the Collaboration Board, with the aim of increasing the trust of participants in the main market and improving the support of the local economy, according to the declaration of the authority. Currently, foreigners have listed different interests in 366 companies out of 368 in the main and parallel markets (growth), including 33 businesses in which foreign ownership is more than 10% of capital, and 12 businesses that include foreign strategic investors, such as ‘Arabic Buba’, ‘Petro Rabigh’ and ‘Sabic Agricultural Ekeling’.