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Foreigners Pump $426 Mn into Saudi Shares Through Direct Investment

Foreigners Pump $426 Mn into Saudi Shares Through Direct Investment
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Foreigners Pump $426 Mn into Saudi Shares Through Direct Investment

Foreigners Pump $426 Mn into Saudi Shares Through Direct Investment

Every week foreign investors pump cash into the Saudi Stock market to buy Saudi shares listed on the local capital market, showing the attractiveness of the Kingdom’s financial market.

In this context, the Saudi Stock Exchange (Tadawul) announced that the net purchases of foreign investors through foreign direct investment has amounted to about SAR1.6 billion ($426.6 million) last week, a high liquidity that confirms the vitality of investment in the domestic market.

Foreign residing investors have bought more than SAR11 million ($2.93 million) during last week. While foreign investors tended to sell with net liquidity of about SAR44 million ($11.7 million) during the same week through swap agreements.

With the opening of the trading week on Sunday, the index of the Saudi stock market closed on green unlike SABIC, which announced a decline in profits for H1 2019 by 54.7 percent compared to H1 2018.

SABIC fell 0.7 percent and Saudi Arabia's index rose to 8,859 points, gaining 40 points amid a cash flow of two billion riyals ($533.3 million).

The market value stood at SAR2.06 trillion ($549.3 billion) on Sunday while its gains have amounted to13.19 percent since the start of trading.

The average dividend yield of listed companies in the Saudi stock market is around 3.29 percent, which is attractive to an investor looking for cash dividends away from day-to-day trades that require a lot of know-how.

In this regard, Al-Sorayai Group achieved the biggest gains on Sunday with about 10 percent, following a recommendation by the company’s board of directors to reduce the capital by 70.9 percent to cover the accumulated losses.

Notably, foreign strategic investors have become more likely to buy in Saudi companies listed on the capital market.

The Capital Markets Authority (CMA) has recently confirmed that strategic investors can acquire strategic shares in listed companies according to a package of obligations.

It excluded foreign strategic investors from the condition of owning more than 49 percent of listed companies in the domestic market, indicating the vitality of the country’s financial market.

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Iranian Official to Asharq Al-Awsat: Committed to Peace and Stability with Saudi Arabia

Iranian Deputy Foreign Minister Majid Takht Ravanchi (Reuters)
Iranian Deputy Foreign Minister Majid Takht Ravanchi (Reuters)
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Iranian Official to Asharq Al-Awsat: Committed to Peace and Stability with Saudi Arabia

Iranian Deputy Foreign Minister Majid Takht Ravanchi (Reuters)
Iranian Deputy Foreign Minister Majid Takht Ravanchi (Reuters)

Iranian Deputy Foreign Minister Majid Takht Ravanchi reaffirmed Iran and Saudi Arabia’s mutual determination to establish lasting peace and stability in the region.
Speaking to Asharq Al-Awsat during his visit to Riyadh, Ravanchi emphasized that achieving this goal requires sustained bilateral and regional cooperation to address current threats and build a foundation for prosperity and security.
During his meetings with the Saudi Vice Minister of Foreign Affairs, Eng. Waleed ElKhereiji, Ravanchi discussed strengthening bilateral relations in political, economic, and consular fields, and explored key regional and international issues.
He described Saudi-Iranian efforts as a “successful model of bilateral and multilateral cooperation,” aimed at fostering peace, security, and development on both regional and international levels. Ravanchi underscored the importance of historical ties and the principle of good neighborliness as the basis for advancing this relationship.
Following the second meeting of the Saudi-Chinese-Iranian trilateral committee in Riyadh, both Saudi Arabia and Iran reiterated their full commitment to implementing the Beijing Agreement, according to a statement by the Saudi foreign ministry. The accord, mediated by China, aims to restore diplomatic ties and promote mutual respect for sovereignty and security in accordance with the principles of the UN Charter, the Organization of Islamic Cooperation (OIC), and international law.
China praised the progress achieved since the agreement’s signing, including the reopening of embassies and increased bilateral engagement. It pledged to continue supporting Saudi-Iranian efforts to deepen their cooperation and maintain regional stability.
Ravanchi, who previously served as Iran’s ambassador to the United Nations and was a member of the Iranian nuclear negotiating team with the P5+1, described the atmosphere of the meetings as “cordial and transparent.” He added that the three nations exchanged views on topics of mutual interest and stressed the importance of continuing this “positive and forward-looking process.” He also revealed “constructive and friendly” meetings held by the Iranian delegation with their Saudi hosts and Chinese counterparts, during which they discussed enhancing bilateral and trilateral cooperation and reviewed developments in relations over the past year.
One significant development has been the improvement in consular services. Over 87,000 Iranian pilgrims performed Hajj, and more than 52,000 completed Umrah in the past year, demonstrating enhanced coordination. Additionally, the first meeting of the Saudi-Iranian Joint Media Committee and the signing of an MoU between Saudi Arabia’s Prince Saud Al-Faisal Institute for Diplomatic Studies and Iran’s Institute for Political and International Studies further strengthened institutional ties.
The trilateral meeting also tackled pressing regional challenges, particularly the Israeli-Palestinian conflict. The participants condemned Israel’s aggression in Palestine, Lebanon, and Iran, calling for an immediate cessation of hostilities and the continuation of humanitarian aid to affected regions. They warned that ongoing violence poses significant risks to regional and global security, including threats to maritime safety.
On Yemen, the parties reiterated their support for a comprehensive political solution under United Nations auspices. They emphasized the importance of dialogue and diplomacy to achieve lasting peace in the war-torn country.
Saudi-Iranian relations have undergone a remarkable transformation since the signing of the Beijing Agreement. The reopening of embassies, including Iran’s embassy in Riyadh in June after a seven-year hiatus, marked a turning point in their ties.
Iranian Deputy Foreign Minister for Consular Affairs Alireza Bigdeli described the day as a “historic milestone” in Saudi-Iranian relations. He expressed confidence that the renewed relationship would reach its peak, emphasizing that the restoration of ties between Iran and Saudi Arabia opens a new chapter in bilateral and regional relations, aimed at greater cooperation and stability.