RIYADH: The business community and economic experts in the capital on Monday welcomed the opening of Saudi stock market (Tadawul) to qualified foreign investors (QFIs) with licenses from the Capital Market Authority (CMA) saying it will help diversify the national economy and grow as an important capital market in the region.

Allowing foreign investors direct access to its approximately $575 billion stock market equities, Tadawul opened to QFIs for trading shares for the first time on Monday.

Welcoming the Tadawul opening with the blue chips up for grabs to QFIs, Zaheeruddin Khalid, Jadwa Investment managing director and chief investment officer (asset management), said: "Saudi stock market opened higher today on strong volumes possibly driven by retail investors’ excitement on market opening to QFIs."

In words of caution, he however pointed toward the inability of Greece to reach an agreement with its creditors weighed on international markets and subsequently also on the local market sentiment.

"On the QFI front, we expect the flows to be gradual and hence there might be some disappointment for retail investors eyeing short-term trades in anticipation of strong QFI inflow," he said. "Over the medium to long term, we remain optimistic on Saudi market’s prospects," he added.

Reacting to it, Saud M. Al-Suwaileh, who works with the Ministry of Finance as an economic specialist, termed the stock market opening as a "welcome step" to diversify the national economy.