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mpact of changes in capital market of Saudi Arabia in 2003 - Essay Example
While the general view of Saudi Arabia as a country with high personal incomes and a resultant high potential investment capacity is certainly true, it is also a country which has started having large surpluses only after 1973 when the price of petroleum reached sky high levels due to a variety of reasons…
This was the first effort to set up a share market, and this committee was the first group which was given the responsibility for market regulation and development. Considering the position of the country as a rich country, the process of development was fast and it became the first country of the world with a fully electronic market in the beginning of 1990s. This market permitted trading, clearing of settlements and depository services. The infrastructure of the market was further developed in 2001, and this was of interest to the people as the market had grown in volume during the intervening period. (Saudi Arabian Capital Markets law passed)
The growth of the market has continued, and before the new act of 15 June, 2003 came up, the capitalisation of the market was to the level of SR477 billion or US$ 127 billion. This made it the largest market in the area and one of the largest among the developing countries in the world. At the same time, the market is limited by the number of companies that are listed on the market, which are only 65. Even the trading for the shares of these companies is limited to only nationals of the country and citizens of countries which are members of the Gulf Cooperation Council. ...