Saudi Arabia’s decision to allow foreign companies to list securities in the Arab world’s biggest bourse may help the region’s equity markets lure investors and boost trading volumes.
Securities on another exchange with comparable listing rules to those in Saudi Arabia can apply for a dual listing in the kingdom, according to new regulations posted on the Saudi Arabian Capital Market Authority’s website yesterday. The country currently doesn’t permit foreigners to directly own shares in its listed companies. The government allowed citizens of neighboring Persian Gulf states to trade in shares in 2007.
“Some United Arab Emirates issuers could list in Saudi Arabia and attract decent liquidity and valuations,” said Dubai-based Ibrahim Masood, who helps manage about $400 million at Mashreqbank PSC. “We keep talking about a regional exchange, Saudi could be it.”
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