Saudi Arabia Permits Foreigners to Directly Invest in Parallel Market

A Saudi investor monitors the stock exchange at the Saudi Stock Exchange, or Tadawul, on December 14, 2016 in the capital Riyadh. (AFP)
A Saudi investor monitors the stock exchange at the Saudi Stock Exchange, or Tadawul, on December 14, 2016 in the capital Riyadh. (AFP)
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Saudi Arabia Permits Foreigners to Directly Invest in Parallel Market

A Saudi investor monitors the stock exchange at the Saudi Stock Exchange, or Tadawul, on December 14, 2016 in the capital Riyadh. (AFP)
A Saudi investor monitors the stock exchange at the Saudi Stock Exchange, or Tadawul, on December 14, 2016 in the capital Riyadh. (AFP)

Saudi Arabia plans to make its capital market more accessible to foreign investors by giving them full access to NOMU, a parallel market recently launched for small and medium-sized enterprises, Mohammed El Kuwaiz, chairman of the Capital Market Authority (CMA) said on Thursday.

Non-resident foreign investors will be able to invest directly in the parallel market starting from January 1 next year.

This step comes within CMA’s strategic plans that aim at achieving Saudi Vision 2030. It also falls under the framework of organizing the financial market and developing its role in supporting the national economy. 

Kuwaiz affirmed that this step goes in tandem with the methodology followed by CMA which seeks to open the financial market for foreign investment.

The methodology stands on the concept of treating the foreign investor as the Saudi investor by empowering him to invest directly in the parallel market NOMU without having to be a QFI (Qualified Foreign Investor).

This step seeks to permit additional categories of investors to invest, at a time when qualification conditions required from foreign investors are the same as those requested from Saudis, Kuwaiz stressed.

CMA issued earlier a Guidance Note of the Investment of Non-Resident Foreigners in the Parallel Market that aims at clarifying the investment mechanism and restrictions related to it. Remarkably, categories allowed to participate in NOMU included qualified foreign investors and final beneficiaries in barter agreements. However, the guidance note included non-resident foreign natural people and legal entities complying with the stipulated standards in the definition of the qualified investor.

The first reaction to the CMA decision was that NOMU index rose 6 percent during Thursday’s trading, closing at 3,192 points.



Report: US Ready to Reopen Oil Stockpile if Petrol Prices Surge Again

FILE PHOTO: A view of the Phillips 66 Company's Los Angeles Refinery (foreground), which processes domestic & imported crude oil into gasoline, aviation and diesel fuels, and storage tanks for refined petroleum products at the Kinder Morgan Carson Terminal (background), at sunset in Carson, California, US, March 11, 2022. REUTERS/Bing Guan/File Photo
FILE PHOTO: A view of the Phillips 66 Company's Los Angeles Refinery (foreground), which processes domestic & imported crude oil into gasoline, aviation and diesel fuels, and storage tanks for refined petroleum products at the Kinder Morgan Carson Terminal (background), at sunset in Carson, California, US, March 11, 2022. REUTERS/Bing Guan/File Photo
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Report: US Ready to Reopen Oil Stockpile if Petrol Prices Surge Again

FILE PHOTO: A view of the Phillips 66 Company's Los Angeles Refinery (foreground), which processes domestic & imported crude oil into gasoline, aviation and diesel fuels, and storage tanks for refined petroleum products at the Kinder Morgan Carson Terminal (background), at sunset in Carson, California, US, March 11, 2022. REUTERS/Bing Guan/File Photo
FILE PHOTO: A view of the Phillips 66 Company's Los Angeles Refinery (foreground), which processes domestic & imported crude oil into gasoline, aviation and diesel fuels, and storage tanks for refined petroleum products at the Kinder Morgan Carson Terminal (background), at sunset in Carson, California, US, March 11, 2022. REUTERS/Bing Guan/File Photo

The Biden administration is ready to release more oil from the US strategic stockpile to stop any jump in petrol prices this summer, the Financial Times reported on Monday.

Senior Biden adviser Amos Hochstein told the newspaper that oil prices are "still too high for many Americans” and he would like to see them “cut down a little bit further.”

Hochstein, speaking to the FT said that the US would "continue to purchase into next year, until we think that the Strategic Petroleum Reserve (SPR) has the volume that it needs again to serve its original purpose of energy security."

The Energy Department this year has been buying about 3 million barrels of oil per month for the SPR after selling 180 million barrels in 2022 following Russia's invasion of Ukraine. The move was an effort to curb gasoline prices that spiked to more than $5.00 a gallon, but it also reduced the reserve to its lowest level in 40 years.

Earlier this month, Energy Secretary Jennifer Granholm told Reuters that the US could hasten the rate of replenishing the SPR as maintenance on the stockpile is completed by the end of the year.