Opening up the Saudi stock exchange to foreign non-GCC investors

Analysis

Following the recent decision by the Council of Ministers' to open up the Saudi stock exchange (the Tadawul) to certain non-GCC investors, we take a closer look at the current status of the stock exchange and the decision's potential impact.

Many non-GCC foreign investors have been waiting eagerly for more access to the region's biggest and most liquid market and the long-awaited move would finally come to pass. The Saudi Arabian Council of Ministers in its meeting held on 24 of Ramadan 1435H (corresponding to 21 July 2014) passed a decision which paves the way for the Capital Market Authority (the CMA) to open the Tadawul to certain investors, at a time it sees fit and pursuant to the regulations to be issued by the CMA.