Riyadh is opening its bourse to the outside world, potentially bringing international investment into the region’s largest stock trading hub. However, government concerns over market control and vulnerability to global market fluctuations mean the opening will be cautious. Saudi Arabia’s stock exchange, Tadawul, will open to foreign institutional investors as of 15 June, the country’s Capital Markets Authority (CMA) announced on 16 April. The opening potentially offers some outside access to an exchange which currently trades stocks in 168 Saudi companies, for which the value of shares traded in 2014 amounted to SR2.15 trillion ($573bn).
CMA President Muhammad al-Jad’an said on 22 April that this opening to foreign investors will make the Saudi stock exchange part of the wider global market and noted that Saudi Arabia is the last country among the G20 to open its stock market for direct foreign investors. (CONTINUED - 894 WORDS)