Saeed Haider

Saudi Gazette

 

DAMMAM — The market reacted cautiously to the opening of the Tadawul All-Shares Index (TASI) to foreign investors. Foreign banks, brokerage houses, fund managers and insurance companies based outside the Gulf can now invest directly provided they meet the requirements.



“A start has been made in right direction and with time it will become smoother with lesser barriers and fewer strings,” said an excited Tareq Al-Dosarry, a stock market dealer who believes that Saudi Arabia has now entered a new era and established a proper connect with world economy.



Private investors as well as financial institutions and business portfolio management companies welcomed the move saying that it will attract foreign capital and reduce the burden on government spending.



However, some of them advised a  “wait and watch” approach. The general perception in stock trading companies was that the opening of the equity share market to foreign investors will allow the Kingdom to attract tens of billions of dollars in fresh investment, easing the pressure on the government to support the private sector.



“It is a wise move in the right direction. I must admit it was long due. We are among the last to open the market,” said Abu Hilal, owner of a investment company in Al-Khobar.



An executive of Al-Istithmar Capital described the decision as historic. “The listed companies will now have access to international expertise and a more diversified and stable source of capital. It will enhance our professionalism and give a fresh approach to market economy,” he said.



Saleh Al-Humaidan, leading business executive and financial expert in the Eastern Province,  called the move timely, especially when oil prices are declining.