Kristian Rouz – Effective Monday, the Saudi stock market will partially open to foreign direct investment, upon the respective decision by the oil-rich nation’s regulative authority.
Previously, foreign investors were only allowed to own Saudi stocks indirectly, via costly share-sap schemes. Now, as the global stock markets are involved into an ever-tightening struggle for investment capital, the Saudi authorities made their move in order to ensure a sustainable influx of FDI against the negative background of the lower crude prices.
The Saudi market has a very attractive investment opportunity due to the stable and predictable rules and little to no political risk, and this is the reason why the world’s most prominent fund managers are preparing to move their money in Saudi Arabia from other similarly-structured markets.
A new investment destination in Saudi Arabia, provides a good opportunity to diversify their investment in emerging markets for institutional investors like hedge funds, pension funds and the largest insurance companies.
