According to Bloomberg, the Saudi Stock Exchange is stepping up its efforts to draw in Asian investors in an effort to boost activity and liquidity in the biggest market in the region.
Over the last five years, foreign ownership of Saudi capital markets has increased dramatically, reaching record highs in 2023. The Capital Market Authority reports that by year’s end, overall foreign ownership had increased to SR401 billion, with net foreign investments reaching SR198 billion ($52.77 billion), up 7.7 percent from 2022.
With the introduction of the Qualified Foreign Investor program in June 2015, direct investment became allowed for the first time. Since then, the CMA has made an effort to draw in foreign investors and broaden the Kingdom’s financial markets, which were formerly primarily local in nature.
According to Bloomberg, which cited the group’s Chief Strategy Officer Lee Hodgkinson, the Saudi Tadawul Group Holding Co. is specifically focusing on Asia due to its recognition of the potential of investors from both the East and the West.
The top official highlighted Asia as a significant priority in a recent episode of Bloomberg’s Tiger Money podcast, emphasizing the importance of fortifying relationships with Chinese investors in particular.
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