This time last year the Saudi Stock Exchange, or Tadawul, had just announced some significant future changes (slated for the first half of 2017) to its regulations in the hopes of making it more attractive to foreign investors.
On April 13, the exchange provided an update1 on its reforms, expressing the belief that the “improvements further align Tadawul with international exchange standards.” Listing 10 “significant changes, many of which are set to go into effect by the close of Q2 2017”, two in particular were singled out:
- Qualified Foreign Investors (QFIs) gain access to domestic IPO market
- Introduction of T+2 settlement cycle to enhance global investor safety and liquidity
Whether these moves in any way accelerate and/or facilitate the country’s plans under Vision 20302 and its desire to gain emerging markets status still remains to be seen.
Tadawul Particpation
Stock Market Ownership (% Value)
Note: QFI = Qualified Foreign Investor, and data as of month end
Source: Saudi Stock Exchange (Tadawul)
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