Foreign investments continue to flow into the Saudi Stock Exchange (Tadawul), according to recent figures, amid growing confidence in the Saudi market, which now stands at 8,000 points. Based on Saudi Stock Exchange data, foreign investors injected around $205.4 million into the market during the past week. The cash flow is an extension of the increased foreign investments injected into the Saudi stock market recently. Against these positive figures, local institutions also brought about $533.3 million, reflecting the significant shift in the quality of investments in the local market. In this regard, Tadawul announced that foreign direct investment (FDI) reached $96.9 million last week, while foreign investments through agreements’ net purchases amounted to $119.8 million. In this context, recent figures revealed a trend among all Saudi institutions, except government agencies, to buy, with net purchases reaching $437.3 million last week. Saudi Arabias announcement of including government debt instruments through Tadawul is a new investment window that opens up wider horizons for investment capital, especially in terms of investing in financial markets. The Saudi stock market boasts multiple options, such as investing in the main stock market, parallel stock market (Nomw), sukuk and bond markets, as well as in real estate investment funds. Meanwhile, the stock market closed on Sunday with a 1.9 percent increase, closing at 7,973 points, a 148-point increase, amid trade worth about $1.12 billion. These developments come at a time when Saudi Arabia launched its program to develop the financial sector, announced as part of Vision 2030. The program aims to improve the experience of operators and users and the status of the Saudi capital markets on the regional and international levels to become the major market in the Middle East and one of the 10 major markets in the world. It also aims to develop Saudi capital markets in order to attract local and foreign investments and thus play a pivotal role in developing the national economy and diversifying its income resources. The increase in net purchases in the Saudi stock market by foreign investors reflects the increasing confidence in the Kingdom’s economic reforms and reflects the total satisfaction with the positive financial results achieved by Saudi companies in 2017.
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