The Kingdom of Saudi Arabia has been making notable strides in economic development, which has resulted in a surge of indirect investment opportunities within its stock market, according to insights from a senior official at EFG Hermes, a MENA-centric investment bank.
Research head Ahmad Shams El Din, during a televised dialogue, mentioned that these new investment openings are fueled by the robust liquidity present in the Saudi market.
He highlighted the growing interest of international investment funds in the Kingdom’s market, which in turn is propelling economic growth.
There is a growing appeal for businesses to join the Saudi stock market and its derivatives market, inspired by the evolving economic landscape.
Shams El Din observed that Saudi Arabia’s economic infrastructure is undergoing significant transformation, with a diverse array of sectors now represented in Tadawul, the Saudi stock exchange.
He drew attention to the decoupling of the Saudi market indicators from oil prices as a sign of the Kingdom’s successful efforts to diversify its economy beyond its traditional reliance on crude oil.
The analyst stated, What happened in the Kingdom of Saudi Arabia, on the economic and social side, opened many doors and many areas for investment. This has enhanced investment opportunities indirectly through the Saudi Stock Exchange.
He also shed light on the potential of the Saudi tourism and real estate sectors, predicting a significant upsurge in the housing market and noting the sustained interest of major global investment funds in these areas.
According to Shams El Din, the sustained health of the oil market, with prices around $60 per barrel, will maintain a minimal deficit for the Kingdom.
Lastly, he emphasized the crucial contribution of the Public Investment Fund in invigorating various sectors and providing the necessary support to maintain liquidity.