17/08/2014
By a percentage up to 20% .. Economists:
Entry of foreign institutions reduce the state's share in stock
Economic forecast passes that the entry of foreign investors to the stock market had a clear impact on the low proportion of State-owned stock in several companies in various sectors. The two scientists said speaking for the ' economic ' share of the State in the market share, which amounts to about 45 percent by acquiring several companies in several sectors of the market, could drop to as much as 20 per cent. Long Saudi Arabia finally allow foreign investors to directly invest in the largest market share in the Middle East; the open promising prospects before the market closed above market value 531 billion dollars.
And the market opening to direct investment by foreign institutions will begin in the first half of next year, after the Cabinet gave the green light to proceed with the move. Dr. Saeed Shaikh, Chief Economist of National Bank: that the State owns about 45 percent of the market value of the shares, allowing foreign companies to the Saudi stock market would reduce that to rates ranging from 30 to 20 per cent. He said: ' this will pave the way for the State to reduce part of its money, and go to new long-term investments, they are not required to continue high risk market '. He said future plans ' to begin the State gradually get rid of the stock in the market, go to new areas it does not accept private sector to start investing in and creating a safe environment for the private sector '.
Meanwhile, Dr. Ali TOUATI, Economist and strategist, the Saudi stock exchange in the coming period will see the entry of giant national companies, excluding the market if the acquisition of foreign companies. He said: ' do not have ownership ratios of more than 5 per cent of the shares of companies, particularly the capital market authority are watching this, and announces an increase in the proportions of ownership '. TOUATI said: ' Saudi companies do not put more than 30 per cent of its shares traded, 70 per cent of core staffing or State '. The Economist predicted that the Saudi market in the forthcoming period major companies will introduce a number of new posts.
