The Saudi Stock Exchange (Tadawul) has not been affected, in terms of its all share index (TASI), by the coronavirus implications, officials in the Kingdom’s capital market affirmed on Tuesday.
They stressed that work is ongoing to prepare plans for the development of the capital market, including Tadawul’s public offering.
Despite the coronavirus pandemic and its effect on the global economy markets, yet the Kingdom has seen success by all means, Chairman of the Capital Market Authority (CMA) Mohammed El Kuwaiz noted.
He said the Saudi market saw positive foreign inflows during the COVID-19 crisis, as its net foreign investments hit SAR5 billion ($1.3 billion) in January and February, and it saw outflows of SAR3 billion in March alone.
Foreign investments served as a “factor of stability” for Saudi Arabia, El Kuwaiz, added in a virtual forum organized by Riyadh Chamber of Commerce and Industry.
Market participants are either adopting a static investment strategy or targeting long-term investments, he noted.
He revealed that Tadawul, which is the official platform for trading of shareholding companies in the capital market, is heading towards becoming a public shareholder in the public offering project.
Tadawul’s Chairperson of the Board of Directors and Chief Executive Officer Khalid Abdullah al-Hussan said work is underway in this regard.
He, however, pointed out that the pandemic’s effect on the current circumstances makes it impossible to set the exact date in 2021.
The plan is unchanged, he confirmed, adding that any substantial or structural impact on the offering will be relayed to the Public Investment Fund, in order to determine on the offering decision.
“I can’t confirm or deny offering Tadawul in 2021, but we are preparing the company for this option anyway,” Hussan said.
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