The Kingdom’s Capital Market Authority revealed that the value of foreign investors’ ownership in the Saudi financial market increased by more than 150% by the end of the second quarter of this year 2021, compared to the end of 2018, where the value of foreign investors’ ownership of all categories in the Saudi market amounted to 288 billion riyals, this comes as a result of efforts The procedures and legislation have taken by the Authority to develop the financial market that stimulates the entry of foreign investors directly and indirectly.
The authority explained that the most prominent sectors that attracted these investments are banks, basic materials, energy, and communications, and indicated that the authority continues to increase the attractiveness of foreign investment in the Saudi market, by allowing strategic foreign investors to own a strategic stake in listed Saudi companies by launching instructions regulating the ownership of foreign strategic investors. Strategic stakes in listed companies.
The Authority confirmed that these efforts had a tangible positive impact on increasing foreign cash flows in the Saudi financial market, encouraging foreign investors to contribute positively, and opening the way for them to invest and save through their ownership of securities listed in the Saudi stock market, which contributed to raising the attractiveness and efficiency of the market for foreign investors.
In 2015, the authority allowed non-resident foreign investors to invest directly by launching the rules governing the investment of qualified foreign financial institutions in listed securities. In the same year, it started a plan of amendments aimed at increasing the market’s attractiveness to foreign investors and opening new horizons for the financial market through many initiatives.
The Authority is working hard to contribute to achieving the goals of the Kingdom’s Vision 2030 through the Financial Sector Development Program, which aims to create an attractive environment for all categories of local and international investors alike. The entry of foreign investors into the Saudi financial market aims to deepen the financial market by increasing liquidity levels and stimulating companies. Listed Saudi Arabia to raise the level of disclosure, in addition to activating the role of its investor relations department, and contributing to increasing coverage of listed Saudi companies from financial locals in global think tanks, in addition to increasing opportunities for business growth of authorized persons, by entering a new segment of investors to the financial market Saudi Arabia.