Fund managers are “abuzz with excitement”, says Simeon Kerr in the FT. From January 2015, Saudi Arabia will allow foreign-investors direct access to its stock market for the first time.
The admission criteria have yet to be finalised, although there has been talk of a minimum of $5bn of assets under management. Overseas investors have hitherto had to use local intermediaries to tap the market.
The equity market in the Gulf’s heavyweight economy has a capitalisation of around $530bn, about the size of Russia’s. It is also more liquid and attracts more flotations than its regional peers.