The announcement has led to speculation that the Kingdom will soon open its
$340bn market stock market to full foreign investment, but experts warn that
any change is likely to be both slow and tightly controlled.

Daniel Abrahams, the managing director of MyCurrencyTransfer,
said opening the stock market would “no doubt attract a wealth of foreign
interest, but the move will be dictated by its fineprint”.

“The plan will probably impose limitations to only institutional investors and
speculation is rife that maximum stakes in companies will be capped. Saudia
Arabia is culturally cautious by nature, and the danger of setting out
excessive restrictions on foreigners may weaken its potential for success,”
he said.

Mr Jose said he believed “the direct entry of foreigners in the Tadawul will
increase the transparency and efficiency of the market in the long term” but
that fear among the local investor community about “the so-called impact of
‘hot money’ increasing volatility in the market” meant it could take a long
time for the stock market to open fully.