Saudi Arabia's stock market committee is moving closer to allowing foreign investors direct market access, according to a document seen by Reuters on 10 January. The document showed that stock market officials met with representatives from regional banks and brokerages, asking them to assess their capabilities for handling foreign accounts.
Officials from the Tadawul (the Saudi stock exchange) were unavailable for comment, Reuters added. According to the document, Tadawul cash markets operation head attend the meeting, along with 29 representatives from banks and brokerages operating in Saudi Arabia.
Currently, foreign investors usually participate through swap instruments such as participatory notes and country funds. Last year, Saudi Arabia also began allowing exchange-traded-funds (ETFs) to trade in the stock market, according to Beltone Financials.
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