Saudi Bourse Awaits Government Approval for Foreign Access - Bloomberg

Saudi Bourse Awaits Government Approval for Foreign Access - Bloomberg:



"Saudi Arabia’s stock market, the Arab world’s largest bourse, is one step away from gaining approval to allow direct foreign investment into equities, according to two people with knowledge of the matter.



The Capital Market Authority completed a draft set of rules for international investors more than a year ago, and at least three banks, including HSBC Holdings Plc (HSBA) and Deutsche Bank AG, have executed test trades, three people said, asking not to be identified as the plans are private. The regulator submitted the draft to the kingdom’s Supreme Economic Council, and an approval would be the final step in opening up the market, one of the people said.



Investors are seeking access to the world’s largest oil producer as the government pursues a $130 billion spending plan to boost the non-oil economy. The benchmark Tadawul All Share Index (SASEIDX), which has a market value of $532 billion, bigger that that of South Africa’s bourse, has gained 14 percent this year."



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