Saudi Shoura passes capital market law
The Saudi advisory council (Shoura) passed a draft law Sunday, December 29, providing for the establishment of a capital market that will replace the existing interbank bourse. The move is hoped to encourage more listings and enable the state to raise quick capital to finance large infrastructure projects.
The bill, which is now being passed on to the Cabinet for ratification, provides for the establishment of an “independent” stock market commission that will oversee the market and ensure efficiency, transparency and protection of funds.
The Saudi bourse is currently run by the Saudi Arabian Monetary Agency (SAMA), the kingdom’s central bank. The bill aims to regulate the administration and trading activities at the Saudi stock exchange, the Middle East’s biggest market in terms of capitalization, with over $74 billion.
The Saudi stock market lists 75 companies, which are open for trade only to Saudi individuals and companies, as well as the neighboring Gulf Cooperation Council (GCC) states. Since 1997, foreigners are allowed to invest in the Saudi stock market only through local funds. — (menareport.com)
© 2002 Mena Report (www.menareport.com)