The stock exchange market of Saudi Arabia has taken care of its economy pretty efficiently – even during the era of falling prices. However, as an international or foreign investor, you have to consider something – this marketplace is, in essence, for people with deep pockets.
Therefore, only creating a plan for your next steps will not be enough. Aside from that, you have to use tools to check out the condition of the stock market and learn more about it. For that, we will ask you to use a torrent website like Pirate Bay to download them.
Additionally, there are some other aspects, like limitations in the Saudi Arabian stock exchange, to consider as well.
Don’t worry. We have researched everything regarding this aspect and shared our thoughts throughout the article. Keep scrolling to learn more in this aspect.
What Is The Saudi Arabian Stock Exchange?
Also known as Tadawuhl, the Saudi Arabian Stock Exchange only permits a foreign institute to invest in the market. Therefore, if you are an individual investor, it will not be possible for you to put your footprint in this segment.
A well-qualified foreign investor needs to have at least USD five billion (with regards to assets) before investing in the market. Besides, you’ll also have to have experience of five years or more in the business segment to be allowed to make investments.
Tadawuhl is pretty prominent in Saudi Arabia. However still, only around 150 organisations have been enlisted in the stock exchange market of the country. Amongst them, the state oil corporation, Saudi Aramco, is situated at the top of the list.
There was a time when this stock market used to be dominated by the country’s primary export product, oil. Nonetheless, since then, the whole scenario has changed quite a lot, particularly due to the downfall of the oil market. Now, the segment of the solar business is more eminent in the Tadawuhl.
Like the stock exchange market of the rest of the world, Saudi Arabia uses a different form of an index as well. It is known as Tadawuhl All Share Index (TASI).
Direct Investment In Saudi Arabian Stocks – Limitations
Contrary to other stock exchange markets, the Saudi Arabian prospect is pretty tight-knit in terms of rules and regulations. Therefore, you are likely to encounter various limitations when it comes to making a direct investment. Here’s what you need to know about them.
- As a foreign investor, you should not own more than 5% of the shares. The same will be projected by your organisation while making the investment.
- If you are a qualified investor, you will be limited to an overall 20% of the whole share of an organisation. If you are thinking about investing in all the available companies, you will get 10% of all the shares.
- Whether you are a resident of Saudi Arabia or not, you’d not be able to own more than 49% of the shares of any company.
Can Ex-Pats Purchase Stocks In Tadawuhl?
Yes, ex-pats can definitely invest their money in the stock exchange market of Saudi Arabia. Besides, you may also sell or buy the shares of an organisation enlisted in the Tadawuhl. Here is a list of people who can purchase shares in the Saudi Arabian market –
- GCC nationals who have an official bank account in Saudi Arabia
- Saudi Nationals
- The Iqama holders of the country
- Any organisation or business registered in the country
Besides these, a few specific stocks also come with a wide array of particular rules of investment. Hence, we will ask you to check those aspects as closely as possible before spending your money on the special stocks.
Saudi Arabia is pretty confined when it comes to investing in the stock exchange market. Therefore, before you put in a large chunk of your budget into a prospect, you will need to check all the limitations properly. We will also ask you to hire a professional and experienced to take care of your paperwork-related requirements. Otherwise, you will end up making a mistake, which, in turn, might deprive you of making any further investment in the future.