Foreign investors capture 5% Saudi shares worth SR108bn

Updated 13 June 2015

Foreign investors capture 5% Saudi shares worth SR108bn

RIYADH: Foreign investors in the Saudi stock market are holding 5.1 percent of the market shares, or SR108.9 billion compared to its market capitalization of SR2.12 trillion, according to a financial report.
Shares of the foreign investors were distributed between “strategic founders” in the Saudi companies valued at SR83.7 billion (3.94 percent of the market capitalization of Saudi stock market) and foreign investments through mid-swap deals worth SR25 billion (1.18 percent of the market), the report filed and analyzed by Al-Eqtisadiah daily said.
According to the report, foreign investors have shares in 166 listed companies whereas they are banned from investment in four companies, namely Taibah Holding Company, Makkah Construction and Development Company, Jabal Omar, and Knowledge Economic City, complying with foreign investment law, which bans real estate investment in the holy cities (Makkah and Madinah).
GCC investments in the Saudi stock market are not considered foreign investments while Arab investments fall within foreign investments category, the report said.
Four Saudi banks captured the biggest portion of foreign investments in the Saudi companies in terms of value topped by Saudi British Bank (SABB) at SR23.1 billion, followed by Banque Saudi Fransi (BSF) at SR14.7 billion, Arab National Bank (ANB) at SR13.9 billion, Saudi Holland Bank (SHB) at SR11.3 billion, PetroRabigh at SR7.8 billion, Samba Financial Group (SFG) at SR3.7 billion, Bupa Arabia at SR3.3 billion, Saudi Basic Industries Corporation (SABIC) at SR2.2 billion, and Jarir at SR1.8 billion, the report said.
In terms of foreign share ownerships in the Saudi companies, there are four companies in which foreign investors have more than 40 percent of the total shares as follows: SHB at 41.8 percent, SABB (41.6 percent), ANB (40.9 percent), and Arabia Insurance Company (40.3 percent).
Meanwhile, foreigners retain more than 30 percent of shares in eight companies: PetroRabigh (38.6 percent), Bupa Arabia (33.4 percent), SABB Takaful (33.3 percent), Allianz SF (33.2 percent), Arabian Insurance (32.4 percent), BSF (31.9 percent), ACE Arabia Cooperative Insurance Company (30.7 percent), and Alinma Tokio Marine Company (30.1 percent), the report said.
As regards mega companies, foreign investors retain 0.7 percent of shares in SABIC (SR2.2 billion), 1.2 percent in Al-Rajhi Bank and National Commercial Bank (SR1.6 billion and SR1.3 billion respectively), 0.2 percent in Saudi Telecom Company (SR273 million), and 0.1 percent in Saudi Electricity Company (SR79 million), the report said.


Africa development bank says risks to continent’s growth ‘increasing by the day’

Updated 18 August 2019

Africa development bank says risks to continent’s growth ‘increasing by the day’

  • The trade dispute between US and China has roiled global markets and unnerved investors
  • African nations need to boost trade with each other to cushion the impact of external shocks

DAR ES SALAAM: The US-China trade war and uncertainty over Brexit pose risks to Africa’s economic prospects that are “increasing by the day,” the head of the African Development Bank (AfDB) told Reuters.
The trade dispute between the world’s two largest economies has roiled global markets and unnerved investors as it stretches into its second year with no end in sight.
Britain, meanwhile, appears to be on course to leave the European Union on Oct. 31 without a transition deal, which economists fear could severely disrupt trade flows.
Akinwumi Adesina, president of the AfDB, said the bank could review its economic growth projection for Africa — of 4 percent in 2019 and 4.1 percent in 2020 — if global external shocks accelerate.
“We normally revise this depending on global external shocks that could slowdown global growth and these issues are increasing by the day,” Adesina told Reuters late on Saturday on the sidelines of the Southern African Development Community meeting in Tanzania’s commercial capital Dar es Salaam.
“You have Brexit, you also have the recent challenges between Pakistan and India that have flared off there, plus you have the trade war between the United States and China. All these things can combine to slow global growth, with implications for African countries.”
The bank chief said African nations need to boost trade with each other and add value to agricultural produce to cushion the impact of external shocks.
“I think the trade war has significantly impacted economic growth prospects in China and therefore import demand from China has fallen significantly and so demand for products and raw materials from Africa will only fall even further,” he said.
“It will also have another effect with regard to China’s own outward-bound investments on the continent,” he added, saying these could also affect official development assistance.
Adesina said a continental free-trade zone launched last month, the African Continental Free Trade Area, could help speed up economic growth and development, but African nations needed to remove non-tariff barriers to boost trade.
“The countries that have always been facing lower volatilities have always been the ones that do a lot more in terms of regional trade and do not rely on exports of raw materials,” Adesina said.
“The challenges cannot be solved unless all the barriers come down. Free mobility of labor, free mobility of capital and free mobility of people.”