Saudi Arabia would be open to relaxing its rules on foreigners investing directly in its stock market to help it get included in global indices, the chairman of the Capital Market Authority told Reuters.
In his first interview with international media, Al Jadaan told Reuters that “[o]ne of our objectives is to ensure we are included in international indices, and we will obviously, in a prudent way, look to ways to ensure we convince them that the market is ready to be placed in their indices,” and added, “We will do whatever is needed from a regulatory point of view to be ready.”
Saudi Arabia’s CMA regulates trading on the Tadawul All Share Index.
Last week, Saudi Arabia’s Capital Market Authority further tightened its restrictions on anonymous investors trading shares through brokers in a bid to prevent money laundering and financing of militant groups.
The Saudi stock exchange opened to wider foreign investment on June 15th, 2015.
Mohammed al-Jadaan was appointed by King Salman on January 29th, 2015 to head the Capital Markets Authority as part of wide-ranging changes to high-ranking government officials and ministers. Previously, he was employed by his family firm, Al-Jadaan & Partners Law Firm, of which he was a founding partner.
Al-Jadaan’s profile notes that he has “extensive experience in advising on all aspects of Capital Market transactions, structuring, documenting and negotiating complex international project financings and providing counsel on corporate and commercial matters, including equity and debt public offering, mergers & acquisitions, joint ventures and shareholder agreements and matters pertaining to Islamic Law and Islamic Finance.”
Saudi Arabia’s stock market has seen tumult in 2015 as oil prices continue to apply downward pressure on stocks and the Saudi economy.
