More foreign investors eyeing Saudi market
Saturday, 06 29 2019, Category: Economy, Country: Saudi Arabia
Saudi Arabia’s decision to scrap the ownership limit for foreign strategic investors in listed firms came as more strategic ones are seeking to enter into the market, Mohammed El-Kuwaiz, chairman of Capital Market Authority, told Al-Arabiya TV on Thursday.
“We hope the new decision will allow more incentives to boost investor diversification in the local capital market, including strategic, financial, foreign and Saudi investors,” El-Kuwaiz said.
The number of foreign investors – including strategic partners -- rose to 7 percent in June 2019 from almost 4 percent in January, driven by the entry of financial investors and inclusion of Saudi Stock Exchange (Tadawul) in global emerging markets indices.
The Kingdom opened the market for foreign investors in 2015 and focused on financial investors, such as asset and fund managers as well as investment firms.
According to CMA, a foreign strategic investor is a foreign legal entity that aims to own a strategic shareholding in listed companies in Saudi Arabia.