Saudi Arabia has decided to build a second bourse that will be allocated to small and medium companies, a newspaper in the Gulf Kingdom reported on Tuesday.
The new market will be completed within 18 months and will be launched in early 2018, the Arabic language daily Al-Jazeera said, quoting a responsible source at the Saudi Capital Market Authority.
“The new market will not affect the existing bourse but will complement and support it as it aims to expand the investment base in the Kingdom,” the source said.
The market will also provide an “opportunity” for new companies seeking funding and new investment chances to Saudis, the source added.
Saudi Arabia’s bourse Tadawul, which was partially opened to foreigners last year, is by far the largest Arab stock market, with its capitalization standing at around $401 billion at the end of June, nearly 37 per cent of the total Arab market capitalization of $1,066 billion, according to the Abu Dhabi-based Arab Monetary Fund.