Deutsche Bank plans to sell sharies on the Saudi Stock Exchange

On August 26, 2008 · In Deutsche Bank, Islamic Index, Saudi Arabia, Sharia Compliant, Tadawul

Deutsche to sell Saudi swap agreements

By Edward Russell | 26 August 2008

Defination of Tadawul-Tadawul (Arabic: تداول) is the only stock exchange in Saudi Arabia. It is the eleventh largest in the world.^[1] The Capital Market Authority supervises the exchange. The Tadawul All-Share Index (TASI) reached its highest point at 20,634.86 on 25 February 2006 . It lists 115 publicly traded companies (as of April 30th 2008). Its trading hours are 11:00AM through 3:30PM local time^[2].

http://en.wikipedia.org/wiki/Tadawul

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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