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Press Dossier    By Date   01/04/2024 Investment opportunities in Saudi stock market on the rise, says analyst

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.

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