Apr. 16, 2015 | 12:18 AM
Saudi silence on eve of bourse opening frustrates investors
Prince Saud al-Faisal talks to The Associated Press about plans to open the Saudi stock exchange to direct investment by foreigners, just one of several plans for the exchange, during an Investment Exhibition in Dubai, United Arab Emirates, Monday, March 30, 2015. (AP Photo/Kamran Jebreili)
Dana El BaltajiDeema Almashabi and Sarmad Khan| Bloomberg
A version of this article appeared in the print edition of The Daily Star on April 16, 2015, on page 6.
Cornerstone Global Associates
Makkah Construction & Development Co.
Medina-based Taiba Holding Co.
Mecca-based Jabal Omar Development Co.
Dragon Life Insurance co.
Al Tamimi & co.
Saudi Arabian General Investment Authority
Riyadh-based Capital Market Authority
Glenn Lovell
Abdullah Alkahtani
Emad Mostaque
Locations & natural formations
Investors are no closer to understanding how the opening of Saudi Arabia's stock market will work than they were in August, when the country published draft rules on the plan.
Eleven weeks before the end-of-June deadline that the Middle East's largest bourse set itself to give foreigners direct access to the market, the Riyadh-based Capital Market Authority has yet to explain how it will square the new rules with existing restrictions on foreign involvement in Saudi businesses. That's left would-be investors guessing how trading will be affected by laws that keep foreigners out of industries ranging from real estate to fisheries.
Saudi Arabia's draft regulations would open the market to foreign investors with a minimum of $5 billion of assets under management and at least five years experience in the business.
Mecca's chamber of commerce in August said foreigners should be barred from owning shares in Mecca-based Jabal Omar Development Co., Makkah Construction & Development Co. and Medina-based Taiba Holding Co. The companies account for almost 7 percent of the nation's Tadawul All Share Index.
The uncertainty affects more companies than just Jabal Omar, Makkah Construction and Taiba, Lovell said.
Given how long Saudi Arabia has managed to keep foreigners out, reconciling existing laws with new ones will take time, Cornerstone's Nuseibeh said.