A new dawn

摘要

The opening of the doors of Tadawul, Saudi Arabia's stock exchange, to foreign investors could be a game-changer for emerging market ECM originators. The details are yet to be nailed down but in the first half of next year, foreigners will finally gain direct access to the largest and most liquid exchange among the Gulf Cooperation Council nations. Tadawul is not just a little bigger than its GCC peers, it dwarfs them. The Riyadh-based exchange accounts for more than half the market capitalisation of GCC stocks and 70% of trading volume. Those numbers underline that Saudi Arabia is already a relatively vibrant home for equity capital - one that's largely insulated from external shocks, to boot - and has no desperate need for foreigners' dollars and euros. If anything, international bankers could have the most to gain.