|

KSA : Regional financial institutions increase Saudi equity allocations

10 days after Saudi Arabia announced that it was opening its stock market to foreign companies thereby surpassing its traditional swaps and exchange trade funds that are in place, most of the stock exchange markets in the Middle East have decided to raise their equity allocations to Saudi Arabia openings. Riyadh’s stock market is currently attractive and several companies are already gearing up to make their entry.

ksa-finance
In a survey done by Reuters with the participation of 15 financial companies namely Abu Dhabi Fund for Development, Ahli Bank Oman, Al Rayan Investment LLC, Al-Mal Capital, Arqaam Capital, Emirates NBD, Global Investment House, Mashreq Bank, Naeem Financial Investments, National Bank of Abu Dhabi, Rasmala Investment Bank, NBK Capital, Schroders Middle East, Securities and Investment Co. of Bahrain and Amwal Qatar, new funds are expected to be raised for the opening scheduled for the first 6 months of 2015.

Saudi’s stock market is the biggest in the Arab World with a capitalization of more than half a billion dollars. Yong Wei Lee, head of regional equities at Dubai’s Emirates NBD said the stock exchange trades almost $2 billion daily making it “significantly larger than any other single Gulf Cooperation Council market.”

The amount circulating in it is easily expected to “attract a lot of active money” stated Naveed Ahmed, senior portfolio manager at Securities and Investment Co. of Bahrain as he described the opening as a “definitely huge positive” move.

Saudi authorities will embark on granting investment licenses to fund managers in order to maintain its market stability which will also help to control the influx of funds. Fund managers will be assembling new funds for the market and avoid transferring their stocks. Saudi’s medium- to long-term prospects are very good.

Short URL: https://me-confidential.com/?p=8392

Posted by on Aug 1 2014. Filed under Finance, Headlines. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

Leave a Reply

Recently Commented

  • Badia Ouadi: What about the 20/20 vision for tourism which HRH has endorsed Himself? There are hundreds of western...
  • Achraf: Wise words from a wise king. And dont forget to work hand in hand. Stability Will be à important factor
  • Mehmet: Erdogan and the Turkish government become more pathetic and miserable and unrealistic day by day.
  • Telh: Israel should take a leaf out of their book.
  • Gemma: Well on this task Jordan gets a big fat F! We need to find a more competent custodian before Al Aqsa is lost...