Saudis to lose $160 billion in foreign stock markets
Saudi investors are likely to lose close to 601 billion Saudi riyals ($160 billion) as a result of the stock price fall on international securities markets. Arab investments in foreign markets are estimated at $1.3 trillion, with Saudi investors owning half of the total, reported Al-Watan.
Losses by Saudis and other Arab investors have been climbing as world stock markets fell over the past two weeks after the disclosure of possible account manipulation by American companies. Moreover, Arab investors have been investing less on foreign markets following the US Treasury Department compiled details of Arab and Muslim businessmen blacklisted on suspicion of financing terrorism after the September 11 attacks.
Arab economists have ruled out the possibility of a major Arab fund repatriation to follow recent developments, insisting that investors are unlikely to sell off their stocks at the moment since losses have only been recorded preliminarily. Presently, only a few million worth of funds have been brought back while the majority have undergone restructuring and redistribution to different investment portfolios in other countries. — (menareport.com)
© 2002 Mena Report (www.menareport.com)