Foreign investors own 13% of free float shares on Tadawul: Al-Rumaih

Mohammed Al-Rumaih, CEO of Saudi Tadawul Group

Foreign investors own around 13% of the free float shares, as the Saudi market seeks to increase the free float and implement more reforms to attract investors, said Mohammed Al-Rumaih, CEO of Saudi Tadawul Group, told Argaam on the sidelines of the EFG Hermes Saudi Forum in London.

The introduction of new products, easily accessible services, and the continued momentum of the new listings, contributed to increasing the number of active foreign investors, he added.

As many as 15 companies obtained the approval of the Capital Market Authority (CMA) on share listing, while over 50 firms filed for regulatory approval. Such an increased momentum was driven by the investment climate in the Kingdom and the continuous efforts of CMA and Tadawul, Al-Rumaih said. 

The agreements signed with the global money markets encourage dual listings, research cooperation and exchange of expertise to accomplish the goals of each market. 

Tadawul adopted a number of regulations catering to the requirements of both investors and companies, as it seeks to boost its foothold as a regional financial center that attracts issuers and investors.  

Tadawul is also developing new products, including derivatives such as option contracts and short selling, which is considered a fundamental pillar of the money market.  

The debt instruments market is valued at SAR 500 billion, mainly propelled by investor overwhelming turnout and the market’s extensive reforms. 

Al-Rumaih indicated that listing criteria for the foreign companies are similar to those for the Saudi companies in terms of the free float as these companies should have a market value of not less than SAR 300 million and must offer 30% of share capital.  

Other additional criteria should apply based on the company’s main market, he added.