Saudi Cabinet’s decision to open the Saudi stock market for direct foreign investments drew positive reactions. The opening is seen during the first half of 2015, according to Saudi Gazette.
Aleksandar Stojanovski, research analyst at Deutsche Bank, said the opening of the Saudi market would be a major positive for the MENA region, with a total market capitalization of $1.2 trillion, where Saudi Arabia alone accounts for 45% and where regional liquidity is around $4 billion of which Saudi Arabia represents 65%.
“With over 160 listed securities, the Kingdom’s stock market offers a diversified sector base,” Stojanovski noted.
The analyst also pointed out that after an opening of the Saudi market and assuming foreign ownership reaches a similar level to the regional equity markets we could see up to around $35 billion of incremental foreign inflow versus the approximately $4 billion that foreigners have accumulated since 2009, when indirect ownership first became available.
Aleksandar Stojanovski, research analyst at Deutsche Bank, said the opening of the Saudi market would be a major positive for the MENA region, with a total market capitalization of $1.2 trillion, where Saudi Arabia alone accounts for 45% and where regional liquidity is around $4 billion of which Saudi Arabia represents 65%.
“With over 160 listed securities, the Kingdom’s stock market offers a diversified sector base,” Stojanovski noted.
The analyst also pointed out that after an opening of the Saudi market and assuming foreign ownership reaches a similar level to the regional equity markets we could see up to around $35 billion of incremental foreign inflow versus the approximately $4 billion that foreigners have accumulated since 2009, when indirect ownership first became available.
Source:
Mubasher
