It is declared that Saudi Arabia’s $531 billion stock market will be launching soon for the benefit of foreign investors, which will also lead to biggest bourse in Arab community.
The cabinet of Saudi Arabia approved the trading of shares in Tadawul All Share Index, yet the implementation’s timing and conduct will be determined beforehand. Basically, this will allow other investors to join in the oil-rich kingdom’s rich economy. There will be a pursuance of $130 billion to boost the economy of non-oil investors. Instead of accessing the market through exchange-trade funds or the like, money managers outside Gulf Cooperation Council may now participate in the stock market provided they meet the standards set by CMA. The foreign investors need at least five years of operation history along with $5 billion of assets. The purpose of the standards is to inhibit the speculative inflows in the expanded market.
The announcement of Saudi Arabia’s $531 billion stock market launching is supported by the capital growth of the country’s economy, which reached up to 4.6% this year. The growth of the company has been participated by the International Monetary Fund (IMF), which is a private sector that remains strong and is questing for more large scale infrastructure projects.