Morgan Stanley to set up Saudi equity fund

12 August 2008
The Capital Market Authority (CMA) of Saudi Arabia has given Morgan Stanley permission to establish an investment fund that will give foreign investors access to Saudi equities, in a sign of the gradual opening up of the Saudi stock market (Tadawul) to foreign capital.

HSBC already operates two funds that give foreign investors access to Saudi equities, after the CMA gave it permission to do so in December 2007. It was the first bank that was allowed to operate a fund for foreign investors.

HSBC is planning to launch a number of new funds giving investors exposure to Saudi equities in the cement and construction sectors.

The CMA has also announced that it intends to name investors who hold more than 5 per cent of a listed company in a bid to increase transparency and corporate governance.

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