Deutsche to sell Saudi swap agreements


The German bank plans to sell shares on the Saudi stock exchange following a relaxation of foreign-ownership rules.


Deutsche Bank says it will begin selling foreign investor shares on the Saudi stock exchange through swap agreements, which will allow foreign investors direct access to the Middle East’s largest economy.

According to Saudi Arabia’s Capital Market Authority (CMA), non-resident foreigners will be allowed to purchase swap agreements on the Saudi stock exchange known as the Tadawul from authorised entities, though a definitive date for the start of trading was not provided. The authorised entities, nine specified brokerages including Deutsche, will own the shares but pass the profits on to the investor through a swap agreement. Deutsche would not comment on the mechanism of its swap agreements.

“There is huge demand from international investors for entry into the Kingdom’s markets,” says Jamal Alkishi, CEO of Deutsche Securities Saudi Arabia. “The Tadawul has the largest number of blue-chip companies in the Middle East, a market capitalisation that stands around $500 billion, constituting approximately 1% of the capitalisation of the global equity markets


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