Japanese bank Nomura has received approval from the Saudi Arabian Capital Markets Authority (CMA) to offer international investors access to the Kingdom's stock market, the bank said Monday. Japan's biggest bank can offer access to Tadawul through total-return swap products whereby securities are issued to foreign investors, it said in an e-mailed statement. Nomura's entry comes amid steps by CMA to gradually open up its retail-dominated stock market, the biggest in the Arab world, directly to foreign investors in a bid to turn its local exchange into a regional hub. Foreign buyers of Saudi stocks currently do so through swap arrangements. Other large global banks such as HSBC and Morgan Stanley already offer such access. “Tadawul is the largest and most liquid stock market in the Arab world and I am delighted that Nomura is now able to act as a gateway for foreign investors into the Kingdom,” said Khaled Al-Khattaf, Chief Executive Officer of Nomura Saudi Arabia. “Fueled by the government's five-year, $400 billion infrastructure investment plan, the Saudi economy is expected to continue experiencing healthy growth in the years to come. Major petrochemical, financial and construction companies in the Kingdom play an important part in supporting this growth, which represents a major investment opportunity. Nomura's ability to execute transactions for international institutions via swaps, is a significant milestone and will help facilitate the flow of foreign capital into the Kingdom,” he said. Nomura received its commencement letter to launch its operations for Saudi Arabia in July 2009, allowing it to offer corporate finance and wealth management services for its clients and deal as an agent for overseas securities. In April 2010, it formally opened its office in Riyadh, becoming the first Asian investment bank to provide investment banking services in the Kingdom.
