Saudi arabia buys stock market

Saudi arabia buys stock market

Author: gradus On: 04.06.2017

Only the biggest financial institutions such as banks, brokers and fund managers will be allowed to get into the game. Saudi Arabia has the largest stock market in the Middle East. The MSCI emerging markets index is up a paltry 2. There are loads of rules: Even though the market officially opened Monday, investors aren't expected to flood in right away because of a range of restrictions that will keep out the small fry.

Saudi Arabia requires that foreign investors register with its Capital Market Authority before they can begin investing. The little guys can still invest, kinda: Those who can't register as "Qualified Foreign Investors" can still invest through a swap agreement program, but they won't have regular shareholder rights and won't be granted voting rights.

Peter Kohli, chief investment officer at DMS Funds, said he won't be investing in Saudi Arabia because of the restrictions on smaller fund managers. The Capital Market Authority, which oversees the stock market, says it wants to grow its institutional investor base in order to promote market stability and reduce volatility.

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The CMA also hopes this "will motivate the listed companies Moustafa Zantout, a spokesman for Kuwaiti investment company Global Investment House, believes the ultimate goal is to convince index provider MSCI to include Saudi Arabia in its widely tracked emerging market index.

MSCI benchmarks are used to help investors access a wide variety of global markets and direct billions of dollars into international stock exchanges.

saudi arabia buys stock market

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saudi arabia buys stock market

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Market Watch | Saudi Stock Exchange - Tadawul | Kingdom of Saudi Arabia

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saudi arabia buys stock market

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