Saudi Bourse Chief Sees Foreign Bets in Market Soaring - Bloomberg:
The chief of Saudi Arabia’s stock exchange predicts ownership of equities by foreigners will triple by 2022, driven by flows from index trackers, as the country awaits the listing of its crown-jewel, Saudi Aramco.
“Since we opened up the market, we wanted to make sure we have enough companies, diversified sectors and industries,” Khalid Al Hussan, chief executive officer of the $573 billion Saudi stock exchange, said in an interview at a conference in Riyadh on Wednesday. “We are ready for the Aramco IPO, but as they change their plans, it gives more time for the exchange to develop.”
Foreigners are net buyers of about $4.3 billion in Saudi shares this year, as they anticipate the upgrade of the country within emerging-market benchmarks by MSCI Inc. and FTSE Russell. International investors will double their estimated holdings to 10 percent of the market by 2020, rising to 15 percent by 2022, Al Hussan estimates. They were initially allowed to trade shares directly in Riyadh about four years ago.
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