The number of Saudi investors in the Bahraini stock market (BSM) is nearing 16,769 with their investments worth SR4 billion, or 9.5 percent of the market capitalization of the stock market, local media said quoting a Bahraini official.

Some 48 companies are listed on the BSM, three from other GCC countries but, however, not inclusive of Saudi companies, CEO of the BSM Khalifa bin Ibrahim Al Khalifa told Al-Eqtisadiah daily.

He said the Bahraini and Saudi stock markets have recently signed a memo of understanding (MoU) which will allow joint listing of companies in both markets.

This step will lead Saudi companies to request listing on the Bahraini market during the current year in light of new legislations and laws being witnessed by the capital sector in both countries, he added.

On how to attract more investors of non-Bahrainis to his country’s stock market, he said one of the initiatives lies in allowing brokerage firms authorized by their regulatory bodies in their respective countries to deal directly with the Bahraini stock market without need to open up representative offices in Bahrain.

In this context, Bahrain stock authorities plan to launch during the current year a series of promotional shows in Saudi major cities and GCC capitals to acquaint investors on the available investment opportunities in the listed companies, he said.

Referring to the nature of relations between the Saudi Capital Market Authority (CMA) and Bahraini Stock Market (BSM), he termed these relations as “very excellent” where wider aspects of technical and legislative cooperation were opened between the two parties.

They also agreed to cooperate on issues related to the spread of investment awareness among different categories of citizens and investors of both countries. This cooperation was crowned with the signing of the above-mentioned MoU between the BSM and Saudi stock exchange market (Tadawul), he pointed out.

On privileges and incentives provided by the BSM to the GCC investors in general and Saudis in particular, he said Bahrain was the first GCC country to allow GCC citizens have direct ownership of shares in Bahrain joint stock companies at rates reaching 100 percent. Moreover, Bahrain does not impose any tax on profits gained from investing in the listed shares, he pointed out.