It is likely that Saudi medium -sized enterprises attract financial flow alongside banks, against the background of the kingdom’s plan to reduce restrictions on foreign ownership of the listed companies. The Saudi Tadawul index jumped by 5.1% on Wednesday, after a member of the Capital Market Authority told the Bloomberg agency that the majority of foreigners could come into effect by the end of this year. Saudi Arabia is on its way to offering majority classes in the companies listed for foreigners, Francis Emes, director and head of the research department in Ajej Capital, said this proposal would increase the liquidity, a matter that was an obstacle to some investors. The growing foreign flow is expected to extend to other companies other than the biggest names in the market. The ownership of “Tadawul” foreigners has not yet been resolved, in an interview with Bloomberg TV: “The Saudi stock market is still not sufficiently represented in the investments of international active managers.” And you see that these news can attract investors to a few small and medium -sized businesses, “which we see very high quality, while sometimes missing, the liquidity of the market.” Also read: Saudi shares have recorded the best weekly profits since July 2022 that have not yet decided the decision of the Capital Market Authority to allow the majority of the majority of foreigners, and it is still unclear the size of the share that foreigners can own in Saudi shares if the decision is applied. The “Tadawul” index has fluctuations of fluctuations on Thursday as it fell by 1% after it expanded at the start of the session on Wednesday. Interest in the non -oil sectors have said EMEs that investors are increasingly focusing on non -oil sectors in Saudi Arabia, amid efforts to diversify the economy. She added that interest in this market, which has developed over the past six over the past six, can be renewed as soon as the rules of ownership are reduced. Initial proposals in the Kingdom, which is already one of the most active, can be an acceleration with companies that go forward in the listing plans. EMEs pointed out that positive organizational changes can affect the timing of descriptions, and that some high -quality companies are preparing to enter the market. It is perhaps interested in: Infograv: which businesses have the top of the list of foreign ownership in Saudi Arabia, the Bobope Structures have supported that bank shares will be the most attractive to the increasing flow, with the “Al -Rajhi Bank” arrow because of the large size already among the worldwide reference indicators. The amount of expected flow, “Al -Rajhi Capital” company, has estimated the flow of approximately $ 9.7 billion to Saudi shares if the limit of foreign ownership is increased to 100%. She added in a memo that bank shares would be its most important beneficiary. JP Morgan Chase believes that raising the Capital Market Authority to 100% opens the door for possible $ 10.6 billion value. EFG Hermes also expects about $ 10 billion. The two parties expected that Al -Rajhi Bank would be the greatest beneficiary of this potential change. The trading activity in Saudi shares is a candidate for the increase. Junaid Ansari, director of the investment strategy at the “Kamco Investment” business, is one of those who see that the reforms, if implemented, will provide wide benefits for the market. You may also be concerned: after their investments have jumped three times during a decade. What does it mean to liberalize the roof of foreigners in the Saudi market? Ansari said this step “could lead to a broader re -evaluation of Saudi supplies spread at low levels due to the decline in crude oil, as well as geopolitical tension in the region.” He added: “Increasing restrictions will certainly contribute to increasing the general trading activity on the stock exchange by active and virtuous investors.”
These sectors benefit from raising the ownership of foreigners in Saudi shares
