Tadawul foreign ownership forecast to reach 10% by year-end, says CEO

Foreign investors ownership in the Saudi Stock Exchange (Tadawul) has exceeded 8 percent, Al Arabiya TV has reported, citing Khalid al-Hussan, chief executive officer of Tadawul.

“Foreign ownership is expected to reach 10 percent by year-end,” al-Hussan said.

Tadawul attracted inflows of SAR 28.5 billion yesterday Aug. 28, including SAR 25 billion in foreign cash flows upon the second tranche of the benchmark inclusion into the MSCI Emerging Market Index.

“The market foreign ownership exceeded SAR 150 billion, including SAR 100 billion for qualified investors; SAR 40 billion for active foreign investors and SAR 60 billion for inactive investors,” al-Hussan stated.

He added that around SAR 12 billion passive inflows are expected to enter the Kingdom, as it increases its share of the FTSE emerging index.

The market has attracted more than SAR 200 billion in cash year-to-date, said al-Hussan adding that the Saudi market is well positioned despite liquidity pressures in the emerging markets.

“Tadawul received higher-than-expected turnout, which proved the market was attractive for investments,” al-Hussan noted.

Tadawul will lure more investments, either through more domestic stock listings, or foreign qualified investors, the CEO stated.

The inclusion will also help the market witness more initial public offerings (IPO), al-Hussan said, adding that the Capital Market Authority (CMA) and Tadawul are considering some listings applications, which will be revealed upon obtaining the required approvals.

“We are seeking sector diversification for the potentially-listed companies,” he concluded.