EFG-Hermes has become the latest securities brokerage to offer foreign institutional investors access to the Saudi Arabian market, through its Abwab product. The Egypt-based investment bank has been granted permission to provide non-resident foreign investors with the ability to purchase Saudi Arabian equities through trade swap arrangements. EFG-Hermes now offers its foreign institutional investors access to the largest market in the Middle East & North Africa (MENA) region, Saudi Arabia, through its recently launched Abwab product. In line with the change in regulation from the Capital Market Authority (CMA), the Arab world's leading investment bank has been granted permission to provide non-resident foreign investors with the ability to purchase Saudi Arabian equities through trade swap arrangements. Matthew Wakeman, managing director at EFG-Hermes, said: “Saudi Arabia is the second most liquid emerging market worldwide and the positive steps being made towards its liberalization not only present investors with exciting opportunities, but also provide the Saudi market with increased liquidity and a potential reduction in volatility.” “The Tadawul accounts for over 25 percent of MENA Market Capitalization and over 40 percent of all MENA traded value. It has a market capitalization of $390 billion and average daily traded value of $2.5 billion. Abwab allows us to present our clients with the ability to access these vast opportunities.” Morgan Stanley and Deutsche Bank already offer investors access to the Saudi market through their subsidiaries, Deutsche Securities Saudi Arabia and Morgan Stanley Saudi Arabia (MSSA).
