Saudi Arabia plans to open up its stock market to international investors in the first half of 2015, a move that will help the Arab world’s biggest bourse draw in more foreign capital and support the nation’s efforts to diversify its economy.
Saudi’s Capital Market Authority (CMA) said on Tuesday that it will publish next month rules for participation by qualified foreign financial institutions in the stock market, Bloomberg News reported.
The oil-rich kingdom’s cabinet on Monday authorized overseas financial institutions to trade equities in the Tadawul All Share Index and gave the Capital Market Authority scope to determine timing, according to the report.
The Saudi stock market is said to be worth about US$530 billion.
The CMA will seek feedback from investors and the public on the rules for 90 days and will review responses by the end of the year, the report said.
The Saudi bourse is currently limited to domestic investors and foreigners from the six-nation Gulf Cooperation Council.
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