RIYADH — Despite worldwide economic downturn, foreign investments did not exit the market because of the strong Saudi fundamentals, Khalid Abdullah Al-Hussan, chief executive officer of the Saudi Stock Exchange (Tadawul) has stressed.

Participating in a remote meeting, organized by the Riyadh Chamber of Commerce and Industry (RCCI) recently, Al-Hussan said the number of foreign investors in the financial market have exceeded 2,100 with a share ownership value exceeding SR130 billion. This, he said, indicates that their ownership in shares exceeds 11% of the total number of free shares.

Al-Hussan stressed that the volume of liquidity has not been adversely affected, rather it has shown an increasing trend. It is because the financial market has proved its strength and durability from the operational and legislative aspects, and in terms of investor confidence.

The Chairman of the Board of the Saudi Capital Market Authority (CMA), Mohammed El-Kuwaiz, revealed that the number of IPO requests for the Saudi financial market during the first half of the current year 2020 increased by 25% compared to the same period in 2019.

Also there was an increase in the requests for flotation for a market growth of 50% compared to the same period last year. He said that the capital increase requests for listed companies increased by 200%, compared to the first half of 2019.

Chairman of the Investment and Securities Committee in the Riyadh Chamber, Muhammad Al-Sayer, said: “Despite the global economic downturn, the Saudi economy withstood the repercussions of the coronavirus pandemic.

The investment and securities sector in Saudi Arabia outperformed other sectors in the Kingdom, and liquidity began to rise, especially with the end of the Q1 2020. Subscriptions will be offered to a number of companies during the coming period which indicates that the financial market is on the right track.”

 

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