Saudi Arabia is opening its stock market to all foreign investors starting February, part of the kingdom’s efforts to draw more capital and reduce its dependence on oil.
Until now, restrictions stipulated that foreigners meet certain requirements, including managing at least $500 million in assets. But Saudi is trying to turn around its stock market, which saw a 13% drop last year — worse than other emerging-market peers — as oil prices fell.
A wider investor pool could also help spur a spate of IPOs; as many as 100 companies are reportedly in the pipeline to go public. Despite economic reforms, it would take a stable oil price “for most investors to re-engage” in Saudi this year, a strategist said.
