Saleh Al-Zahrani Okaz/Saudi Gazette JEDDAH — Foreign companies must have an average capital of SR18 billion or a minimum of SR11 billion in order to enter the Saudi Stock Exchange Market, the Saudi Capital Market Authority's charter states. It also states that these companies will be allowed to enter the exchange this year. Against this backdrop, a three-day “Stocks and Financial Investment Exhibition” kicks off today (April 5) under the auspices of Crown Prince Fahd Bin Mugrin Bin Abdulaziz. The charter also limits foreign investors participation, allowing them to invest only up to 5 percent of a Saudi company. Saudi companies can have only up to 20 percent of foreign investments. Moreover, foreign investments in the Saudi stock market are capped at 10 percent. The head of the exhibition Dhiaa Al-Hariri said the exhibition aims to be the first and biggest platform for discussion and research in the stock exchange market. “We want to attract investors and donors to invest in stocks. The exhibition aims to discuss and tackle the obstacles standing in the way of generating paper money. The exhibition will also reflect on the authority's decision and review the sustainable and warranted processes possible to merge the foreign companies into the stock exchange market,” said Al-Hariri. The exhibition will also address the legal obstacles standing in the way of providing a variety of loan deals in the market, he further said. “Experts will present their researches on the latest developments in the stock exchange market. Current and potential investors can benefit greatly from the exhibition as it will address financial transparency and trust in financial transactions,” Al-Hariri said. He pointed out that investors need to be aware of the credible sources of information related to the market. “We don't want to repeat wild speculations which break out in stock exchange markets such as what happened on Black Monday in New York, Saudi Stock Exchange Market in 2006, or Kuwait Stock Exchange Market in 1983,” he added. — SG
