The roadshow aims to enhance understanding of the Saudi market among major institutional investors in three of the world most important financial centres. It comes as part of a long term aim to increase the level of experienced institutional investment in the market.
Currently, the majority of monthly trading activity approximately 90% – is conducted by individual investors, in spite of the fact that they account for only 34% of market ownership. By bringing in further institutional expertise it is expected that stability within the market will be enhanced.
On June 15th 2015, the Saudi stock market opened up to direct foreign investment through the Qualified Foreign Investors framework which is designed to enhance corporate governance among firms by enabling international institutions to have an active voice as shareholders in listed companies. These investors are also expected to enhance research coverage and improve local knowledge and expertise, bringing benefits to all market stakeholders listed companies, investors and financial intermediaries.
Fadi Hammad, Chief of Corporate Development at Saudi Stock Exchange, commented: “This roadshow will form an important part of our efforts to enhance the professionalization of the market. The chance to meet some of the world leading investors face-to-face and for them to gain a real understanding of the quality of the issuers and opportunities in the Saudi market will be crucial”.
“The main attraction for investors attending the roadshow will be the chance to meet with some of the companies listed on the exchange and we would like to take this opportunity to thank those involved in the roadshow. We have already had very strong levels of interest in all the cities we are travelling to from both investors and media, which reflects the fundamental strengths of the market and the Saudi economy”.