Arab News, Mon, Apr 01, 2024 | Ramadan 22, 1445
Investment opportunities in Saudi stock market on the rise, says analyst
Saudi Arabia:
Saudi Arabia’s economic growth and efforts have enhanced indirect investment
opportunities in the Kingdom’s stock market, said a top official of the Egyptian
financial services company, EFG Hermes.
Ahmad Shams El Din, head of research for MENA at
the company, told Al-Ekhbariya in an interview that new opportunities were
driven by the liquidity witnessed in the Saudi market.
Global investment funds are also taking a keen
interest in the Kingdom’s market and driving its economic growth, he said.
The executive said the situation has created an
incentive for companies to list on the Kingdom’s stock market and the
derivatives market.
He further posited that the economic fundamentals
of Saudi Arabia are witnessing a major shift, which is evident from the fact
that almost all the sectors are now represented in Tadawul.
The analyst noted that a decoupling has occurred
between oil prices and the Saudi market’s indicators pointing toward the success
of the Kingdom’s plans to diversify its economy away from crude oil.
Shams El Din said: “What happened in the Kingdom
of Saudi Arabia, on the economic and social side, opened many doors and many
areas for investment. This has enhanced investment opportunities indirectly
through the Saudi Stock Exchange.”
He pointed to the Saudi tourism and real estate
sectors noting that the housing industry may witness a major boom in the coming
days, and other major sectors including tourism remain on the “radar” of major
global investment funds.
He said: “There are very large sectors that are
still on the screen or radar for foreign investors. The story, however, is oil.
As long as the oil price is $60 per barrel, the Kingdom’s deficit will be
small.”
The executive also underscored the important role
the Public Investment Fund is playing in boosting other sectors and providing
them with the support needed to ensure liquidity.