Saudi Arabia is seeking to add some new money into their $745 billion economy, as they are finally allowing foreign investors to buy and sell shares on their stock market, starting next year.
The country's Tadawul All Share Index hit a six-year high today, after the Capital Market Authority announced that foreign dollars would begin flowing soon. The move is set to bring in as much as $40 billion in foreign cash.
This move comes as Saudi Arabia moves to boost their non-oil industries. As the biggest exporter of oil in the world, it has been the driving factor of their overall economy. Nonetheless, other industries are becoming increasingly important, and the government has decided to spend $130 billion to help improve the non-energy sectors. The economy has been "expanding at an average rate of 6.4 percent in the past four years even as Middle Eastern neighbors from Egypt to Iraq grappled with political turmoil," according to Bloomberg.
“The move by Saudi Arabia helps accelerate efforts by the Gulf into becoming a more mainstream destination for international investors,” Ryan Huang, a market strategist, told Bloomberg. “Opening up the market will be a liquidity boost for Saudi corporations.”
This article is from the archive of our partner The Wire.