Saudi Stock Market Reforms Seen Boosting Flows to Smaller Names

Saudi medium-size companies are likely to attract flows alongside banks on the back of the kingdom’s plan to loosen foreign ownership limits for public companies.

Saudi Arabia’s Tadawul stock index surged 5.1% on Wednesday after a board member of the Capital Market Authority told Bloomberg News that majority foreign ownership could come into effect by the end of the year.

The proposal would provide a boost to liquidity, an issue that has held back some investors, said Frances Ames, director and head of research at Ajeej Capital. That would see increased foreign inflows extend beyond the market’s biggest names. ...