Saudi Arabian stock market to open to foreign investors

Saudi Arabia’s stock market will open up to foreign investors for the first time, the country has announced.

The move, which should happen in the first half of 2015, sparked a 3% rise in the Tadawul index in early trading.

The Saudi market is the biggest in the Middle East and the second biggest in the world, next to China, that is closed to direct foreign investment.

Currently, foreigners can only gain exposure to Saudi stocks through derivatives and investment funds.

After the market is opened up, foreigners will be able to buy Saudi stocks directly on the Tadawul.

The move is part of wider government efforts to diversify the Saudi economy away from oil.

“The market will be open to eligible foreign financial institutions to invest in listed shares during the first half of 2015, with God’s permission,” the country’s Capital Market Authority said.

Source-BBC