The Financial Markets Authority in Saudi Arabia revealed in an official statement this morning that all resident and non-resident foreigners, i.e. expatriate workers and expatriates of all nationalities, are allowed to invest directly in listed and unlisted debt instruments.
The Saudi market was greatly affected by that global pandemic after the financial markets or the Saudi financial market (Tadawul) stopped and returned to work strongly again, starting from Thursday Shawwal 5, 1441 AH - May 28, 2020.
At that time, Tadawul revealed in today's statement to him that the first session (the opening auction) really started from 09:30 in the morning to 10:00 in the morning, and the second session (the market is open - execution) starting from 10:00 in the morning until 03:00 in the evening. , While the third session (closing auction) for the listed securities started from 03:00 PM to 03:10 PM, with the exception of debt instruments and ETFs.
And the fourth session, which is trading on the closing price, for all listed securities starts from 03:10 PM to 03:20 PM, with the exception of debt instruments and ETFs.
As for the fifth session (closed market) for all listed securities, it actually started from 03:20 PM to 04:00 PM, with the exception of debt instruments and ETFs, as it will be from 03:00 PM to 04:00 PM.
In light of the spread of the global epidemic, Tadawul had announced the reduction of trading hours to start in the open market from 10 am to 1 pm, starting on Thursday, March 26th.
In a related context, Mazen Al-Sudairy, head of research who works for the Saudi Al-Rajhi Financial Company, spoke in a press interview with Al-Masr newspaper, that this decision is required by the bonds of companies.
Mazen Al-Sudairy, head of research at Al-Rajhi Capital, Saudi Arabia, added in Huwara with Al-Nasr newspaper, that the decision "came in light of the accession of the bond market in the Kingdom of Saudi Arabia to indicators at the global level, which calls for allowing all foreigners to invest directly in debt instruments issued by them." Those institutions and companies. "
Mazen Al-Sudairi, head of research at Al-Rajhi Capital, Saudi Arabia, added that this decision aims to help all foreign investors residing in the Kingdom, whether they are expatriates or expatriate workers in Saudi Arabia, helped to invest very easily, and to increase the volume of investments in the Saudi market.
Mazen Al-Sudairy, head of research at Al-Rajhi Capital, Saudi Arabia, added, "The size of the debt market at the present time in terms of amounts is very large, and it is larger than stocks, and the participation of more investors in the debt market provides a more fair evaluation or fair value in the market."
Indeed, the Saudi Stock Exchange (Tadawul) joined from March 2019 until the current year 2020 to three global emerging market indicators, namely Standard & Poor's Dow Jones, Morgan Stanley for emerging markets MSCI, and finally FTSE Russell for emerging markets, according to the Saudi Stock Exchange website, And media reports.
Mazen Al-Sudairy, head of research at Al-Rajhi Capital, Saudi Arabia, added that before the Saudi market joined these global economic indicators, "foreign investments were linked to stocks only, while bonds were only in the local market, but they became global."
For its part, the Saudi Capital Market Authority revealed in its statement issued yesterday evening that allowing all foreigners of all nationalities to invest directly in debt instruments is part of its plan to develop the money market and the debt instruments market in the Kingdom of Saudi Arabia.
Mazen Al-Sudairy, head of research at Al-Rajhi Capital, Saudi Arabia, indicated that the continuation of the "approach to openness to the world" is aimed at attracting investors from all countries of the world and deepening the Saudi market.
For its part, the Kingdom of Saudi Arabia had opened stock markets to foreign investors in 2015, and since that time it has implemented a set of reforms in order to make it attractive to all foreign investors and stock issuers and expand the base of investment institutions, within the framework of the Saudi economy diversification plan instead of relying on oil. And gas.