Tadawul likely to rally 20% in 2018, says Mulkia’s CEO

The Saudi Stock Exchange (Tadawul) is expected to show positive performance this year with a gain of almost 20 percent, Muneera Al Dossary, chief executive officer of Mulkia Investment Co., told Argaam in an exclusive during Euromoney Conference 2018.

Foreign investors are showing great interest in various market sectors, which is likely to support the local economy and the market.

“The Saudi market is expected to initially attract almost SAR 40 billion in the next couple of years, Al Dossary said, adding that inflows could be higher on the imminent decision of FTSE and MSCI on market upgrade next month.

Al Dossary added that the market needs positive institutional inflows to make a balance between retail and institutional investors.

Commenting on the market sectors, Al Dossary said the banking system is attractive, particularly for foreign investors, thanks to its solid performance, strong P/E ratios and attractive dividends which are higher than the market average.

Meanwhile, she expects a recovery in the cement sector by the end of this year or in early 2019, backed by mega projects, such as Al-Qiddiya, the Red Sea tourism project, Neom, and other expansions in Makkah and Madinah.

Al Dossary added that the reforms being implemented by the Kingdom are in favor of both citizens and local economy, expecting these measures to pay off in the long term.