Franklin Templeton gets QFI status in Saudi Arabia

Share

US fund manager Franklin Templeton is to allow foreign investors to invest directly in Saudi Arabian stocks for the first time, after announcing that its funds have been granted Qualified Foreign Investor status
by market regulators.

The firm’s increased commitment to Saudi Arabian stocks follows the steady easing of restrictions on foreign investors by regulators in the Kingdom, as part of capital markets and economic reforms within the
country.

The Saudi Capital Market Authority (CMA) announced measures to ease restrictions on foreign investment in the local stock market from this January and allowed eligible foreign enterprises to acquire a larger
stake of up to 10 percent of any issuer’s shares, up from 5 percent.

“Bold fiscal reforms, including steps to reduce its reliance on oil, will put the Kingdom’s economy on more sustainable footing over the long-term,” said Bassel Khatoun, managing director, frontier and MENA,
Franklin Templeton Emerging Markets Equity.

“At the same time, impressive capital-market reform is culminating in classification upgrades by key index providers. Finally, social reform continues unabated, leading to new investment opportunities across
the economy. As a firm, we are excited to be part of these positive developments.”

Saud stocks are expected to be upgraded to emerging market status by index provider MSCI on Wednesday, following a similar upgrade by fellow index provider FTSE Russell at the end of March.

Around $3 billion in foreign flows has come into the market already in 2018, taking total foreign investment in local equities to around $9 billion.

Franklin Templeton forecasts such upgrades will attract additional foreign investment flows of around $35 billion. The upcoming IPO of Saudi Aramco, expected in the next year or so, will bring in $50 billion in
foreign investment depending on valuation, the firm predicted.

19/06/2018
Arab News
Industry
01
Al-Khobar third top destination for hotel developm...More Details
02
Aramco launches center for contractors and supplie...More Details
03
Private equity firms booming, yet no time to be co...More Details
Economic
Events
10
09/2019
Electra Mining Botswana Gaborone ...More Details
28
08/2019
ExpoFerretera Buenos Aires ...More Details
27
05/2019
Exponor Chile Antofagasta ...More Details
More Economic Events
Accounting
Tools

Business Starting Costs Calculator

How much does it cost to start a business? ....

Profit and Loss Calculator

This calculator will help you calculate the profit and loss of your business.

Personal Budget Calculator

Use this calculator to create your personalized

More Accounting Tools
19
06/2019
Economic
News
img

Saudi Arabia kick starts sale of state flour mills ....Read More

img

Saudi merchandise exports rise 17.5% in Q1- GASTAT ....Read More

img

Saudi universities to open doors to small businesses in R&D ....Read More

More Economic News