The current rise of Tadawul All-Share Index (TASI) is not only based on speculative gain or positive sentiment but also on the flourishing local economy, which is underpinned by robust economic fundamentals, Arab News stated citing Jadwa report.
The bourse’s trading activity is dominated by local retail investors, according to the report. Tadawul is the region’s most diverse capital market due to its size and maturity, and has been gearing up to welcome foreign investors for some time now.
Jadwa stated that allowing direct foreign ownership will be a key milestone for the development of Saudi Arabian capital markets and indeed the wider economy.
The report issuer views the opening up of the Tadawul as an overall positive but we believe a cautious and considered path to reform is the best way forward, much like the Chinese example.