Saudi to ease foreign companies’ listing into its capital market


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Saudi to ease foreign companies’ listing into its capital market

On Sunday, the 6th of October 2019, the Saudi Capital Market Authority (CMA), a government-controlled regulatory body accountable for supervising the stock exchanges in Saudi Arabia, said that the Kingdom of Saudi Arabia had decided to introduce facilitatory measures to ease inclusion of foreign companies into its stock exchanges, remarking a landmark move ordered by Saudi Crown Prince Mohammed bin Salman in a bid to encourage investments in the Kingdom’s secondary market and to diversity the nation’s oil dependent economy.

In point of fact, Saudi’s main stock index, Tadawul, had opened its door to foreign companies back in 2015, nonetheless, despite a series of reforms to attract international exporters and stock traders, Saudi’s main index, which was enrolled into the FTSE’s index of emerging markets earlier this year, had been failing to encourage foreign capitals, while last year’s murder of Saudi Journalist Jamal Khashoggi, believed to be happened under Saudi’s crown prince Mohammed bin Salman’s order alongside other human rights’ issues and a series of geopolitical turn of events exposing vulnerabilities of Saudi’s highly oil-dependent economy, might have been hammering down potential investment outlook, suggested analysts.

Nonetheless, adding that it had introduced new measures that would ease listings of exporters in Saudi’s main stock market, CMA Chairman Mohammed bin Abdullah al-Quwaiz said in a statement on Sunday (October 6th), “This step will provide great opportunities to diversify investments for investors. ”