14 June, 2015

Foreign investors capture 5% Saudi shares worth SR108bn

Foreign investors in the Saudi stock market are holding 5.1 percent of the market shares, or SR108.9 billion compared to its market capitalization of SR2.12 trillion, according to a financial report.

14 June 2015
RIYADH: Foreign investors in the Saudi stock market are holding 5.1 percent of the market shares, or SR108.9 billion compared to its market capitalization of SR2.12 trillion, according to a financial report.

Shares of the foreign investors were distributed between "strategic founders" in the Saudi companies valued at SR83.7 billion (3.94 percent of the market capitalization of Saudi stock market) and foreign investments through mid-swap deals worth SR25 billion (1.18 percent of the market), the report filed and analyzed by Al-Eqtisadiah daily said.

According to the report, foreign investors have shares in 166 listed companies whereas they are banned from investment in four companies, namely Taibah Holding Company, Makkah Construction and Development Company, Jabal Omar, and Knowledge Economic City, complying with foreign investment law, which bans real estate investment in the holy cities (Makkah and Madinah).

GCC investments in the Saudi stock market are not considered foreign investments while Arab investments fall within foreign investments category, the report said.

Four Saudi banks captured the biggest portion of foreign investments in the Saudi companies in terms of value topped by Saudi British Bank (SABB) at SR23.1 billion, followed by Banque Saudi Fransi (BSF) at SR14.7 billion, Arab National Bank (ANB) at SR13.9 billion, Saudi Holland Bank (SHB) at SR11.3 billion, PetroRabigh at SR7.8 billion, Samba Financial Group (SFG) at SR3.7 billion, Bupa Arabia at SR3.3 billion, Saudi Basic Industries Corporation (SABIC) at SR2.2 billion, and Jarir at SR1.8 billion, the report said.

In terms of foreign share ownerships in the Saudi companies, there are four companies in which foreign investors have more than 40 percent of the total shares as follows: SHB at 41.8 percent, SABB (41.6 percent), ANB (40.9 percent), and Arabia Insurance Company (40.3 percent).

Meanwhile, foreigners retain more than 30 percent of shares in eight companies: PetroRabigh (38.6 percent), Bupa Arabia (33.4 percent), SABB Takaful (33.3 percent), Allianz SF (33.2 percent), Arabian Insurance (32.4 percent), BSF (31.9 percent), ACE Arabia Cooperative Insurance Company (30.7 percent), and Alinma Tokio Marine Company (30.1 percent), the report said.

As regards mega companies, foreign investors retain 0.7 percent of shares in SABIC (SR2.2 billion), 1.2 percent in Al-Rajhi Bank and National Commercial Bank (SR1.6 billion and SR1.3 billion respectively), 0.2 percent in Saudi Telecom Company (SR273 million), and 0.1 percent in Saudi Electricity Company (SR79 million), the report said.

© Arab News 2015