2 Nov 2017
SAUDI ARABIA: Overseas Investors Granted Access to NOMU and Future IPOs
Non-resident foreign investors are to be allowed to buy and sell shares listed on NOMU, the country’s secondary market. This move, which comes into effect as of 1 January 2018, is seen as offering such investors far easier access to the Saudi capital market than via the Tadawul, the country’s primary stock exchange.
The moves to open up the country’s secondary market to foreign investors are seen as very much in line with Vision 2030, Saudi Arabia’s ambitious economic reform initiative, which is focussed on broadening the country’s economic base beyond its current reliance on oil revenues.
In a related move, it has also been announced that overseas investors will be permitted to participate in future initial public offerings (IPO) within Saudi Arabia. This will include the 2018 sale of a 5% stake in Aramco, the state-owned oil giant, which will be the country’s largest IPO to date.