Saudi Bourse Bill Approved by Cabinet
To open the Arab World's largest stock market, Saudi Arabia's cabinet finally gave permission to the financial regulator. This is to make direct investment by foreign financial institutions. In the world's largest oil exporter, the Saudi market which is capitalized around $530 billion is amongst the most awaited monetary reforms.
To start welcoming overseas money, the bourse would be one of the world's last major exchanges. On Tuesday, the cabinet said in a statement, "The cabinet authorized the Capital Market Authority - at a time it sees as appropriate - to allow foreign financial institutions to buy and sell stocks on the Saudi stock market, according to the CMA".
Further, fund managers said the news would boost up the Saudi market. Since, local investors anticipated fund inflows which actually worth billions of dollars. So far, the market index is up 14.2% in 2014. Test trades have already prevailed and thus, fresh foreign investment may start to flow in speedily.
Presently, foreigners are restricted to buying Saudi stocks via swaps. This involves international banks and exchange traded funds which are inconvenient options. Because, the Saudi Arabia is a strong economy, the potential foreign interest in its stocks would be large enough.
Opening the Saudi bourse, it is expected to seen the Gulf as a mainstream destination for international visitors. In the Middle East, the Saudi market is amongst the most tightly regulated and stable market.
Facebook, the most popular social-networking...Read More
Betting big on cruisers, the luxury motorcycle...Read More
Uber Technologies reported lower loss by nearly 9...Read More
The Samsung Galaxy Note 8 is facing an increasingly...Read More
Luxury carmaker BMW’s next-generation M5 car will...Read More
Board members of the bankrupt Energy Future...Read More