RIYADH: Money management executives and institutional investors are preparing for what could be a significant change to the makeup of their emerging markets equity allocations, due to the imminent opening of the Saudi Arabia stock market to qualified foreign investors.
In two weeks, qualified foreign investors will gain direct access to Saudi Arabia’s almost $600 billion stock market.
“Saudi Arabia opening up for international investors is actually a big event,” said Rami Sidani, Dubai-based head of Middle East, emerging markets equity, at Schroders PLC. “This is the last large market to open up and become accessible for international investors.”
Since the Kingdom of Saudi Arabia announced the opening of the market this year, “there has been tremendous excitement in the investment community in this new opportunity,” said Sebastien Lieblich, executive director and global head of index management research in Geneva at MSCI Inc. “From that moment onward, we have been contacted by a number of clients interested in us launching as soon as possible an MSCI Saudi Arabia index, which would be reflective of the investments of international investors.”
