Saudi Arabia’s Stock Market: A Hotbed for Indirect Investment Opportunities
EFG Hermes Official Highlights Kingdom’s Economic Growth
In a recent interview with Al-Ekhbariya, Ahmad Shams El Din, head of research for MENA at EFG Hermes, emphasized how Saudi Arabia’s economic growth has paved the way for increased indirect investment opportunities in the Kingdom’s stock market.
According to El Din, the liquidity surge in the Saudi market has attracted global investment funds, driving economic growth and creating new opportunities for companies to list on the stock and derivatives market.
Diversification Efforts Paying Off
El Din pointed out that the economic fundamentals of Saudi Arabia are undergoing a significant transformation, with almost all sectors now represented in Tadawul. He noted a decoupling between oil prices and the Saudi market’s indicators, indicating the success of the Kingdom’s efforts to diversify its economy away from crude oil.
Key Sectors to Watch
Highlighting the potential for growth, El Din specifically mentioned the Saudi tourism and real estate sectors as poised for significant development. He predicted a housing industry boom in the near future and noted that other major sectors like tourism are attracting attention from global investment funds.
Public Investment Fund’s Impact
El Din also stressed the crucial role of the Public Investment Fund in supporting various sectors and ensuring liquidity. He emphasized that as long as oil prices remain stable around $60 per barrel, the Kingdom’s deficit will remain manageable.