Tadawul to attract up to $50 bln inflows on market upgrade: CMA chairman

The Saudi Stock Exchange (Tadawul) is expected to attract around $30 billion to $50 billion in cash inflows on the market upgrade to an emerging market status, Al Arabiya TV reported, citing Mohammed El Kuwaiz, chairman of the Capital Market Authority (CMA).

“Fresh cash inflows have already started to enter the market in 2018. The other active investments will move after the upgrade decision,” El Kuwaiz said on the sidelines of the World Economic Forum 2019 in Davos.

“Foreign ownership has risen to nearly 5 percent year-to-date (YTD), due to the recent decisions that facilitated foreign investors’ entry. Also, investors’ number tripled to 450, compared to 2018 in anticipation of the market upgrade to emerging market indices,” he added.

“We are currently working on strategic investor regulations, which are expected to be implemented in the first six months of 2019,” El Kuwaiz further said, adding, “foreign investors will be able to own more than 50 percent of Saudi companies.”

Saudi CMA president also indicated that four companies have applied to list in Tadawul, expecting more firms to follow in 2019.