Releasing rules regulating foreign investment
Releasing rules regulating foreign investment
Releasing rules regulating foreign investment.
Issuing rules regulating foreign investment
On this occasion, Mohammed Al-Qwaiz, Vice Chairman of the Capital Market Authority (CMA), explained that this step represents a translation of the efforts taken by the CMA to develop the Saudi financial market and move it to the ranks of global markets.Mohammed Al-Qwaiz added <“The CMA worked with the Saudi Stock Exchange Company (Tadawul) and market participants to ensure the realization of several initiatives, including the issuance of rules governing the investment of qualified foreign institutions in securities listed on the Saudi market, the approval of the separation of the Depository Center from Tadawul and its transformation into an independent company, and the amendment of the time period (Tadawul) into an independent company, amending the time period for settlement of listed securities transactions from immediate settlement (T+0) to settlement after two working days (T+2), activating short selling conditional on borrowing shares, establishing a parallel market (Nomu) and launching various financial products such as Real Estate Investment Trusts (REITs). (REITs)
Companies joining global indices
As for listed companies, Al-Qwaiz said, “The Authority has taken steps to join global indices by applying international best practices, such as switching to International Financial Reporting Standards (IFRS) at the beginning of 2017 and amending the Corporate Governance Regulations.”In addition to this, Al-Qwaiz said that the Authority has taken steps to ensure that listed companies join global indices by applying international best practices. In addition to the inclusion of the Saudi Stock Exchange on the MSCI Emerging Markets Index, the Saudi Stock Exchange is currently on the FTSE Emerging Markets Index, and the follow-up list usually lasts for a period of time during which institutional investors are surveyed about the Saudi Stock Exchange, its legislation and procedures before final approval to join the index, noting that full accession to the index usually takes a period of time from the decision to join.
Follow-up list usually lasts for a period of time during which institutional investors are surveyed about the Saudi Stock Exchange, its legislation and procedures applied in it before final approval to join the index.
Benefits of MSCI
The CMA stated that joining international indices, including the MSCI Emerging Markets Index, which is done after the end of the follow-up period, will entail several benefits, including supporting market stability and reducing volatility by promoting institutional investment, which increases the efficiency of the financial market.The CMA also stated that joining the MSCI Emerging Markets Index will enhance the attractiveness of the market and reduce volatility by promoting institutional investment, which increases the efficiency of the financial market. It also enhances the attractiveness and liquidity of the market by making the Saudi Stock Exchange accessible to a large segment of investors in various countries of the world who target investing in emerging markets, as many international investment funds and institutions rely on global indices for investment by allocating part of their investments to the Saudi market based on its weight in those indices.
Among the expected benefits of joining the Saudi Stock Exchange is that it will support market stability and reduce volatility by promoting institutional investment, which increases the efficiency of the capital market. <Among the expected benefits of joining: Raising the level of disclosure of listed companies and activating the role of investor relations as a result of the high contribution of institutional investors, raising the level of research and studies on listed companies that support investors in making their investment decisions, in addition to supporting the performance of persons authorized to deal in securities transactions by increasing the customer base and greater activation of the role of custody service providers.
