Foreigners get Saudi access in swaps

But exchange still looks like a political tool.

Foreign fund managers can finally access individual Saudi stocks – or at least the economic benefit of the stocks, which is what interests them. What does this show about the Saudi stock exchange? Is the Tadawul about to become a more natural market, moved by investor sentiment related primarily to expectations of corporate earnings growth?

Allowing foreigners access to Saudi shares should lead to a less volatile market, because more of those involved will be primarily institutional investors.

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