Tadawul CEO: Foreign ownership of Saudi stocks to reach 10 pct

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Saudi Arabia’s listed companies could see holdings by foreign investors rise to 10 percent when shares are included in index providers MSCI and FTSE's emerging markets indices, the chief executive of Tadawul told Reuters on Monday.

Khalid al-Hussan said he expected equities on the Saudi bourse, Tadawul, to attract five billion dollars of passive funds inflows after the FTSE Russell inclusion. Foreign investors currently hold 5.9 percent of Saudi shares.

Saudi shares, which have gained 9.6 percent so far this year, on Monday joined the FTSE Emerging All Cap Index with a weighting of 2.9 percent. In May, Saudi shares will join the MSCI Emerging Markets Index.

The number of qualified foreign investors is expected to double from the current 730 prior to the MSCI inclusion, al-Hussan told Reuters.

The Saudi main equities index rose 0.2 percent at the open on Monday.

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