Saudi Arabia plans to open its monetary markets to all overseas traders from February 1, the Gulf nation’s market regulator stated on Tuesday, because it eases guidelines to draw more cash from overseas.
The amendments permitted by the Capital Markets Authority remove the idea of the Certified Overseas Investor, scrapping a rule that allowed solely worldwide traders with direct and constant entry to the Saudi Arabia capital market.
The transfer will enable traders from world wide to speculate straight within the capital market, the CMA stated in a press release, including it could help inflows and enhance market liquidity.
Saudi Arabia, which is greater than midway by means of an financial plan to cut back its dependence on oil, has been making an attempt to draw overseas traders, together with by establishing exchange-traded funds with Asian companions in Japan and Hong Kong.
Regulators final yr additionally opened the door for foreigners to purchase listed companies that personal actual property in Mecca and Medina, with out altering restrictions on direct land possession.
JP Morgan stated it anticipated the affect of Tuesday’s transfer to be restricted as “practically all” institutional traders had been already allowed to speculate available in the market.
“As a reminder, the important thing regulatory change that traders expect is the change to the overseas possession limits, which ought to have some constructive affect in the marketplace,” JPM stated in a observe, including that it didn’t anticipate that change to occur earlier than the second half of the yr or later.
Saudi shares jumped in September following a report that the CMA may ease a 49% cap on overseas possession of listed companies, in a transfer that might assist revive curiosity within the Arab world’s largest inventory alternate.
The Saudi benchmark index fell 12.8% final yr and is down 1.9% to this point this yr, in accordance with LSEG information.
Saudi Arabia approves localization of jobs in personal sector
The Ministry of Human Sources and Social Improvement of Saudi Arabia has permitted the localization of key procurement-related professions within the personal sector, as a part of wider efforts to empower nationwide expertise and increase employment alternatives for residents.
