FINANCIAL NEWS

Saudi CMA expected to start cross-listing foreign firms in 2013

18 Jul 2012

(MENAFN) Saudi Capital Markets Authority (CMA) unveiled plans to start cross-listing foreign companies on its exchange (Tadawul) within a year, focusing on neighboring GCC firms, another step into opening up its market to foreign investors, Reuters reported.

Waleed Al-Bawardi, director of cash and markets at Tadawul, said details on disclosure requirements were being agreed with the CMA after the regulator amended listing rules in January to allow for cross-listing.

Bawardi indicated the benefits of direct foreign ownership, including the stability offered by institutional investors in a market currently 95-percent dominated by retail investors.

Steps to opening the doors for foreign listing in the USD337 billion worth stock market, are being long awaited by investors, a move that could attract large interest as it gives direct access to bluechips like Saudi Basic Industries Corp (SABIC), the world’s most valuable chemical company.

Foreigners are currently only allowed to invest in Saudi firms through share swap transactions via international investment banks who deal with local markets.

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