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Tue 16 Jun 2015 03:22 PM

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'We'll see a flurry of foreign investor licenses in coming weeks," says Saudi bourse CEO

Saudi market regulator has said foreign institutions can buy stocks directly from June 15

'We'll see a flurry of foreign investor licenses in coming weeks," says Saudi bourse CEO
(Getty Images)

The chief executive of Saudi Arabia's stock exchange Adel Al Ghamdi said on Monday he expects the first flurry of licenses allowing foreign investors to buy shares there in the next few weeks.

Al Ghamdi told Reuters he expected the first 'Qualified Investor Licence' to be awarded straight away and that rules on who could get them would evolve regularly.

"We have six applications under process from very large institutions - the first transaction from a qualified foreign investor will actually take place today," he said.

"As we evolve, there might be a spike of involvement from foreign investors over the next two or three months, but that will stablise as we go forward."

The Saudi market regulator has said foreign institutions can buy stocks directly from June 15, but it has not so far announced the award of any licences permitting specific institutions to do so, and it is not clear when the first batch of licences will be granted.

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