Saudi Arabia: Stock market liberalisation to affect mainly big listed firms
Source: Middle East Insurance Review | Jul 2015
New rules released by Saudi Arabia on the long-awaited opening of its stock market to foreigners are expected to have the most impact on large listed companies, reported The Wall Street Journal.
The rules, which took effect on 1 June, permit only qualified foreign investors such as insurers, banks, brokerages, and fund managers with at least US$5 billion in assets under management to invest in what is the Middle East’s biggest market.
The market’s opening to large institutional investors are expected to increase liquidity and improve the corporate governance practices of listed companies. Until now, foreign investors had only limited indirect access to the Saudi market through instruments such as swaps.