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Investors Put Big Money Into World Stock Funds But Growth Funds Fall
More Options/Opportunity for World Investors Coming Next Year Saudi Arabian stock markets will open to more foreign investment in 2015 Foreigners are at present believed to own no more than about 5 percent of the Saudi market, and to account for a smaller fraction of stock trading turnover.
Potential foreign interest in Saudi stocks is huge, because of the country's strong economy - the International Monetary Fund on Monday raised its forecast for Saudi growth this year to 4.6 percent - and the presence of some of the region's top blue-chip firms.
Foreign investors are estimated to own about 15 percent of other, much smaller stock markets in the Gulf such as Dubai. If foreigners raise their ownership of Saudi Arabia to that level, it could mean an inflow of some $50 billion into the country. "This is a massive move for Saudi and for the region," said Rami Sidani Sidani estimated Saudi Arabia could ultimately account for around 3 to 5 percent of MSCI's emerging market index.
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Saudi Arabian stock markets will open to more foreign investment in 2015
Foreigners are at present believed to own no more than about 5 percent of the Saudi market, and to account for a smaller fraction of stock trading turnover.
Potential foreign interest in Saudi stocks is huge, because of the country's strong economy - the International Monetary Fund on Monday raised its forecast for Saudi growth this year to 4.6 percent - and the presence of some of the region's top blue-chip firms.
Foreign investors are estimated to own about 15 percent of other, much smaller stock markets in the Gulf such as Dubai. If foreigners raise their ownership of Saudi Arabia to that level, it could mean an inflow of some $50 billion into the country.
"This is a massive move for Saudi and for the region," said Rami Sidani
Sidani estimated Saudi Arabia could ultimately account for around 3 to 5 percent of MSCI's emerging market index.
"This is a potential game changer for the region – a very important milestone that people have been waiting for," said Salah Shamma, co-head of regional equities at U.S. fund management giant Franklin Templeton.
http://www.reuters.com/article/2014/07/22/us-saudi-stocks-investment-idUSKBN0FR0IQ20140722