Ashmore to open investment office in Saudi Arabia before it opens to foreign investment

Emerging markets-focused fund manager Ashmore Group announced on Monday the launch of an asset management office in Saudi Arabia, ahead of the hotly-awaited opening of the country’s stock market to foreign investors.

Ashmore said the move in Saudi Arabia was to allow easier direct foreign investment in the country’s stock market, dubbed Tadawul.

Tadawul, which has a market capitalization of over $530 billion is a “milestone even and of significant importance to investment managers such as Ashmore,” the company said.

Currently, Saudi Arabia contains few international players with a permanent presence, including HSBC and Morgan Stanley. However, the upcoming stock market opening will surely attract more foreign firms into the largest economy in the Arab world.

Tadawul is Saudi Arabia’s main stock index, and contains more than 160 companies with an average daily volume of trade worth over $2 billion, which makes it the region’s most liquid bourse, and similar in size to stock markets in Turkey, Indonesia and Mexico.