Arab Today, arab today cma finalizing rules for foreign stock ownership
Last Updated : GMT 14:40:32
Arab Today, arab today
Arab Today, arab today

CMA finalizing rules for foreign stock ownership

Arab Today, arab today

Arab Today, arab today CMA finalizing rules for foreign stock ownership

Riyadh - Arabstoday

The Capital Market Authority is finalizing a regulatory framework which will allow foreigners to directly own stocks in Saudi Arabia, though the market has no need for liquidity from international investors, says its Chairman Mohammed bin Abdulmalik Al-Sheikh. \"We are attracting foreign investment to come to the market for the technical expertise and human capacity,\" he was quoted as saying by Reuters on the sidelines of the Euromoney conference in Riyadh. \"There are a number of government entities, including CMA, that are looking at that (direct foreign investment). We\'re finalizing a regulatory framework with certain parameters,\" Al-Sheikh said. Reacting to the CMA\'s latest initiatives, John Sfakianakis, chief investment strategist at Masic in Saudi Arabia, said: \"Opening the market to direct foreign ownership will only help deepen the stock market and make it more transparent. The benefits of opening the market outweigh any costs.\" Asim Bukhtiar, head of research at Riyad Capital, told Arab News: \"Direct foreign ownership in Saudi equities would be the next evolutionary step. Indications are that foreign appetite is strong to invest in the largest regional exchange, which could add greater depth and breadth to the market and ultimately benefit all participants.\" Further, he said large institutional investors could push for greater disclosures and transparency which will pave the way for Saudi equities to be included in widely followed emerging markets indices. Following this, the next steps would be the introduction of new instruments such as REITs, options and warrants, and covered shorts. An efficient and well-regulated market should be the eventual goal. \"Speculation will always exist however a greater composition of long-term investors will provide the stability that the regulator desires,\" Bukhtiar said. Commenting on the same issue, Sfakianakis said the CMA could increase its monitoring by using different strategies and punishing those that are found breaking the market rules. Currently, foreign investors can only buy shares in Saudi Arabia through swap deals involving international investment banks, and via a small number of exchange-traded funds. The regulator is also trying to limit \"high levels of speculation\" in the stock market, said the CMA chairman. \"The CMA should put a limit on this manipulation to safeguard investors. We are currently trying to address this issue.\" Al-Sheikh also said the CMA and other government bodies intended to encourage institutional investment in the market by diversifying investment instruments and funds, including sukuk and other debt tools. \"CMA is developing a strategy to promote institutional trading on the Tadawul,\" he said, adding: \"While out of the total 47 billion stocks listed 45 percent are held by individuals, nearly 93 percent of daily trading is done by retailers.\" On year-to-date basis, the Tadawul All-Share Index has so far showed a collection of 381 points or 5.6 percent. The index dropped 0.09 percent yesterday despite slight gains made by petrochemical stocks. Referring to Saudi petrochemical stocks, Sfakianakis said: \"Many investors, both foreign and local, are on a wait-and-see mode on most petchems given that Q1 results were mixed.\" According to Bloomberg, Deutsche Bank AG and HSBC Holdings Plc are among banks that have predicted Saudi Arabia\'s market may open to foreigners as early as next year amid rising demand for assets in the Kingdom. Saudi Arabia may attract as much as $ 30 billion of inflows, John Burbank, founder of $ 3.7 billion San Francisco-based hedge fund Passport Capital LLC, said in February. In a separate development, the CMA said the license of Saudi Integrated Telecommunications Co. had been canceled and a committee had been formed to dissolve the financially troubled telco. \"The priority in the repayments of the company\'s obligations is to its non-founder subscribers and shareholders. The commission should finish this very urgently in a period not exceeding six months,\" the CMA said in a statement posted on the Tadawul website. Source: ArabNews

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today cma finalizing rules for foreign stock ownership Arab Today, arab today cma finalizing rules for foreign stock ownership

 



Arab Today, arab today
Arab Today, arab today Heart of Turkish Riviera is Alluring Seaside Escape

GMT 11:11 2017 Tuesday ,28 March

Heart of Turkish Riviera is Alluring Seaside Escape
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Turkey says ends its military operation

GMT 07:53 2017 Thursday ,30 March

Turkey says ends its military operation
Arab Today, arab today Media host gives priority to problems of people

GMT 07:00 2017 Tuesday ,28 March

Media host gives priority to problems of people
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Disaster costs nearly double to $175bn

GMT 10:42 2017 Tuesday ,28 March

Disaster costs nearly double to $175bn
Arab Today, arab today Campaign fights sexual harassment in Egypt

GMT 11:14 2017 Tuesday ,28 March

Campaign fights sexual harassment in Egypt
Arab Today, arab today 'Underwater wasteland' worries

GMT 10:32 2017 Thursday ,30 March

'Underwater wasteland' worries
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Mercedes, VW recall million vehicles in China

GMT 09:16 2017 Wednesday ,29 March

Mercedes, VW recall million vehicles in China
Arab Today, arab today Uber grounds self-driving cars

GMT 09:11 2017 Monday ,27 March

Uber grounds self-driving cars
Arab Today, arab today Singer Rowida Attiya will issue a new song

GMT 07:38 2017 Tuesday ,28 March

Singer Rowida Attiya will issue a new song
Arab Today, arab today Trump moves to roll back Obama climate measures

GMT 08:39 2017 Wednesday ,29 March

Trump moves to roll back Obama climate measures

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 09:28 2017 Tuesday ,28 March

Trump poised to roll back climate protections

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 07:50 2017 Thursday ,30 March

Breaking trans barriers one barbell

GMT 09:02 2017 Thursday ,23 March

Laptop ban sparks ire

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday