Saudi Arabia could get $50bn inflow windfall says CMA chief

Mohammed bin Abdullah Al-Quweiz, the president of Saudi Capital Market Authority, said he expected inflows of around $30-$50 billion because of the recent upgrade in emerging market indices. (Courtesy Al Arabiya)
Updated 23 January 2019

Saudi Arabia could get $50bn inflow windfall says CMA chief

  • Mohammed bin Abdullah Al-Quweiz: These expected inflows are part of the remaining funds, and the other active investments will move after the decision to upgrade
  • Al-Quweiz: The number of foreign investors has tripled in anticipation of the market being upgraded to emerging market indices

LONDON: Saudi Arabia could attract inflows of as much as $50 billion according to the Kingdom’s markets chief.

Mohammed bin Abdullah Al-Quweiz, the president of Saudi Capital Market Authority, said he expected inflows of around $30-$50 billion because of the recent upgrade in emerging market indices.

He made the prediction in an interview with Al Arabiya on the sidelines of the World Economic Forum in Davos.

“These expected inflows are part of the remaining funds, and the other active investments will move after the decision to upgrade,” he told the channel.

He said “the foreign investor will be able to own more than 50 percent of Saudi companies” adding that this will attract more foreign inflows to the Saudi financial market.

“The number of foreign investors has tripled in anticipation of the market being upgraded to emerging market indices,” Al-Quweiz said.

He said that there are more than 450 foreign investors in the Saudi market.

Saudi Arabia has launched a number of market reforms aimed at boosting the involvement of foreign investors in the Tadawul — the Kingdom’s stock market which has the largest capitalization in the region.

Al-Quweiz said that the percentage of foreign ownership in the Saudi stock market is currently about 5 percent.


Conflict-hit Libya to restart oil operations but with low output

Updated 10 July 2020

Conflict-hit Libya to restart oil operations but with low output

  • There is significant damage to the reservoirs and infrastructure
  • A first cargo of 650,000 barrels will be shipped by the Kriti Bastion Aframax tanker

TUNIS: Libya’s National Oil Corporation (NOC) lifted force majeure on all oil exports on Friday as a first tanker loaded at Es Sider after a half-year blockade by eastern forces, but said technical problems caused by the shutdown would keep output low.
“The increase in production will take a long time due to the significant damage to reservoirs and infrastructure caused by the illegal blockade imposed on January 17,” NOC said in a statement.
A first cargo of 650,000 barrels will be shipped by the Kriti Bastion Aframax tanker, chartered by Vitol, which two sources at Es Sider port said had docked and started loading on Friday morning.
The blockade, which was imposed by forces in eastern Libya loyal to Khalifa Haftar’s Libyan National Army (LNA), has cost the country $6.5 billion in lost export revenue, NOC said.
“Our infrastructure has suffered lasting damage, and our focus now must be on maintenance and securing a budget for the work to be done,” NOC chairman Mustafa Sanalla said in the statement.
Control over Libya’s oil infrastructure, the richest prize for competing forces in the country, and access to revenues, has become an ever-more significant factor in the civil war.
The internationally recognized Government of National Accord, supported by Turkey, has recently pushed back the LNA, backed by the United Arab Emirates, Russia and Egypt, from the environs of Tripoli and pushed toward Sirte, near the main oil terminals.