The Saudi market is expecting a heavy inflow of foreign funds in 2019, as it joins emerging market indexes compiled by MSCI and FTSE Russell.
The Saudi Stock Exchange (Tadawul) is expecting share listings to pick up next year while the launch of stock index futures should smooth an influx of money from overseas, reported Reuters.
Khalid Abdullah Al Hussan, the CEO of Tadawul, said that authorities were working on several initiatives to deepen the market with initial public offers of equity to help the market to be more stable.
The Tadawul is planning to offer a package of incentives to local companies that list, a move which is likely to persuade family-controlled groups to take some of their operations public.
Currently, the exchange is working with regulators to complete a framework for foreign companies to cross-list their shares in Riyadh.