Special to WorldTribune.com
Amid declining oil revenues, Saudi Arabia’s Tadawul All-Shares Index, the Arab world’s largest stock exchange, allowed foreign investors to trade shares for the first time on June 15.
In a notice issued on June 14, the exchange said that “as of Monday… qualified Foreign Investors can commence dealing in listed shares.”
The Capital Economics research group said “there will remain heavy restrictions” on foreign investors but that the move “could be seen as the first step in a broader liberalization” of the Saudi economy.
Capital Economics said one fifth of the Saudi market consists of petrochemical firms whose earnings are tied to oil prices that have sunk 40 percent from a year ago.
The International Monetary Fund has projected that Saudi Arabia, the world’s leading oil exporter, faces a budget deficit of 20 percent of gross domestic product this year due to lower oil revenues and strong government spending.
New world energy order: Saudis open stock market to foreign investors added by World Tribune on
View all posts by World Tribune →
You must be logged in to post a comment Login