Japanese bank Nomura has gotten regulatory approval to offer foreign investors access to Saudi Arabia's stock market, joining a growing list of banks beefing up their presence ahead of anticipated market liberalisation. Nomura's entry comes amid steps by the kingdom to gradually open up its retail-dominated stock market, the biggest in the Arab world, directly to foreign investors in a bid to turn its local exchange into a regional hub.
Japan's biggest bank can offer access to the bourse, called Tadawul, through total-return swap products whereby securities are issued to foreign investors, it said in an e-mailed statement on Monday. "Nomura's ability to execute transactions for international institutions via swaps, is a significant milestone and will help facilitate the flow of foreign capital into the kingdom," said Khaled al-Khattaf, chief executive officer of Nomura Saudi Arabia in the statement.