Khalid Al Hussan, the Chief Executive Officer of Tadawul/Bloomberg

Markets

Tadawul chief expects an increase in foreign investors by 2022

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Foreigners are net buyers of about $4.3 billion in Saudi shares this year, as they anticipate the upgrade of the Kingdom within emerging-market benchmarks by MSCI Index and FTSE Russell.

Thursday 25, April 2019

(Bloomberg) --The Chief Executive of Tadawul has predicted that ownership of equities by foreigners will triple by 2022, driven by flows from index trackers, as the country awaits the listing of Saudi Aramco.

Khalid Al Hussan, the Chief Executive Officer of Tadawul, said, “Since we opened up the market, we wanted to make sure we have enough companies as well as diversified sectors and industries, we are ready for Saudi Aramco IPO, but as they change their plans, it gives more time for the exchange to develop.”

International investors will double their estimated holdings to 10 per cent of the market by 2020, rising to 15 per cent by 2022, Al Hussan said.

International investors were initially allowed to trade shares directly in Riyadh about four years ago.

Khalid Al-Falih, Saudi Energy Minister, said, “Saudi Aramco may access the equity markets sooner than you think, the initial public offering (IPO), previously expected for last year and later delayed to 2021, could slip a little bit, could come forward.”

Meanwhile, there are four IPOs scheduled for this year, which should be one of the best in the past five for new deals, added Al Hussan.

Fawaz Alhokair Group’s Arabian Centres is one of them and the first from the Kingdom to do an offering under Regulation S and Rule 144A of the US Securities Act, which is familiar to American investors.

The tech company, Al Moammar Information Systems, raised SAR 216 million ($58 million) in an offering this year.

 

TAGS : Tadawul, Saudi Aramco IPO, FTSE Russell, MSCI EM Index, Arabian Centres , Al Moammar Information Systems

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