equity swaps: Investors from outside the six-nation Gulf Cooperation Council can currently access shares in the kingdom through equity swaps and exchangetraded funds and the opening up of the market comes at a time when Saudi Arabia is pursuing a $130 billion spending plan to boost non-energy industries, according to Business Week. Income from oil accounted for almost 90 per cent of its revenue last year. Having set out its plans in August, the Riyadh-based Capital Market Authority finally stated last month that it would publish the rules on 4 May, with foreign access commencing on 15 June. Saudis aren’t going to be happy if foreigners own anything in Mecca and Medina, so we’ll probably see strict restrictions on companies with assets in these places Companies are asking for more clarity on regulations around the mechanics of investing, says Glenn Lovell, a partner at the Al Tamimi & Co. law firm who is advising international investors on the opening of the market. The lack of clarity underscores the difficulty the world biggest oil exporter has in giving outsiders greater influence in a country where movie theatres are banned, executions are carried out publicly and the Grand Mufti, the highest religious authority, can override any judicial ruling. What will happen, and we see this quite a lot in Saudi Arabia, is that the issues will be ironed out over an extended period of time as the implementing officials become more familiar with the new law, he says.
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