Foreign Money and Interest Fund Managers

foreign investor: The Saudi market is by far the biggest in the Arab world and one of the last major bourses globally to open up, so the reform is attracting huge foreign interest, according to Euro News. Fund managers estimate the market could draw $50 billion or more of new foreign money in coming years if it is included in global indexes. A single foreign investor will be able to hold no more than 5 percent of any listed company, while total foreign ownership of a firm will be limited to 20 percent. Analysts believe it could enter the widely watched MSCI emerging market index as soon as mid-2017, if it satisfies requirements for liquidity and transparency. The rules were identical in major respects to a set of draft regulations which the CMA published last August, and which were privately criticised by some fund managers then as overly restrictive. But by placing a range of restrictions on the operations of foreign investors, the Capital Market Authority made clear on Monday that it did not want a sudden, destabilising rush of money into the bourse. (news.financializer.com). As reported in the news.