Foreign investments to bolster Tadawul’s long-term stability: HSBC

Saudi Arabia’s decision to open its stock market to foreign investors is an important step towards developing and bolstering the exchange, said Nabeel Ali Shuaib, acting chief executive of HSBC Saudi.

Foreign direct investments will increase volume in the market, as well as share values, he said.

The move will also promote the long-term stability of the Saudi stock market, he added.

Last July, the cabinet agreed to open the kingdom’s stock market to foreign investors, according to data available on Argaam.

The Capital Market Authority published in August a set of guidelines for eligible companies that can enlist in the market, which is set to open its doors to foreign investors during the first half of 2015.

Saudi Arabia’s stock market is currently the largest in the Arab world in terms of liquidity.