Saudi Arabia is reportedly considering relaxing a 49 percent limit for foreign strategic investors in shares of listed companies.
Mohammed El-Kuwaiz, chairman of the Capital Market Authority told Reuters that the move is being considered due to increased demand.
Foreigners currently own 5.5 percent of Saudi equities but that could nearly double by the end of 2020, Mohammed El Kuwaiz said in an interview with Reuters in Riyadh.
“We found most strategic investors are maybe looking to build more sizeable stakes,” Kuwaiz was quoted as saying.
The kingdom, which has the Middle East’s largest exchange, has introduced a raft of reforms as it seeks to position its bourse as an international capital markets hub.
It has seen a surge in foreign fund flows since the start of the year due to the inclusion in the emerging markets indexes.
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