The slow road

30 March 2015 By Una Galani Follow @ugalani

Despite the differences between the two, the kingdom is copying China’s cautious approach as it grants foreigners direct access to its $523 bln stock market. The experience of the People’s Republic suggests Saudi Arabia’s opening is likely to be a whimper rather than a big bang.

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Saudi Arabia is on track to open its $523 billion stock market to direct foreign investment in the first half of this year, the new head of the kingdom’s securities regulator said on Feb. 1.

“The CMA [Capital Market Authority] is committed to open the market to foreign investors… This decision is very important and has huge benefits”, Mohammed Al-Jadaan was quoted as saying in an interview with al-Hayat newspaper.

The regulator published draft rules on foreign investment in the stock market last August.

It remains unclear when the final rules will be published or exactly which date the market will open, according to bankers familiar with the situation.

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