Abu Dhabi-Mubasher: The Saudi Exchange's (Tadawul) opening to foreigners next month will attract huge cash flows from global funds in the short and medium-term, said Sachin Mohindra, portfolio manager at Invest Abu Dhabi.

The amount of international cash that does arrive depends relatively on the evaluation measures of Saudi equities, Mohindra said.

The final draft of direct investment regulations will be issued on 4 May and will be effective on 1 June, Mohindra said.

Foreigners will start trading Saudi equities on 15 June, he said, adding that the Tadawul is likely to be included in the Morgan Stanley Capital International (MSCI) indexes by 2017, which will boost cash flows.

The Tadawul's opening will reflect positively on other GCC markets, the expert said.