Saudi Arabia will allow overseas companies to list securities on the Arab world’s biggest bourse, fueling speculation the country may open to foreign investors.
“It’s a good step, a step closer to further opening the market to foreign investors,” said Turki Fadaak, head of research at Riyadh-based Albilad Investment Co. “At this stage, current investors will trade stocks listed by foreign issuers, and in later stages, foreign investors too will be trading these shares.”
Securities that are listed on another exchange with at “least equivalent” rules to those in Saudi Arabia can apply for a dual listing in the kingdom, the rules posted on the Saudi Arabian Capital Market Authority’s website yesterday said. The country doesn’t permit foreigners to directly own shares in its listed companies. The government allowed citizens of neighboring Gulf states to buy and sell local shares in 2007. The nation’s benchmark Tadawul All Share Index (SASEIDX) has a market value of about 1.28 trillion riyals ($341 billion).
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