The CMA resolution allows investors to trade in shares on the Tadawul through locally authorised businesses, as long as the local entity maintains legal ownership of the shares.

“There is huge demand from international investors for entry into the kingdom’s markets,” according to Jamal Alkishi, chief executive of Deutsche Securities Saudi Arabia, Deutsche’s CMA registered subsidiary in the country.

The move by the CMA to open the Tadawul (stock exchange) to foreign investors through swap agreements is the latest move by the regulator to open a market that was previously closed to all but GCC nationals.

Over the last 12 months the market has begun to open up more, with HSBC being given permission in late 2007 to market a fund that allowed foreigners exposure to the Tadawul .