Blackrock wins licence to trade in Saudi Arabian stock market

Riyadh: BlackRock Inc, the world’s biggest asset manager, said it has received a qualified foreign investor licence to trade Saudi Arabian stocks, making it the latest foreign investor to gain direct access to the Middle East’s largest exchange.

The asset manager has also introduced the iShares MSCI Saudi Arabia Capped ETF to track Saudi Arabia’s stock market, after the exchange opened to foreign investment in June, a spokesman for the New York-based company said.

BlackRock is the fourth international company known to have a licence to trade Saudi Arabian equities. HSBC Holdings Plc and asset manager Ashmore Group have both confirmed they have QFI licences, while people with knowledge of the matter told Bloomberg last month that Citigroup Inc. has also gained the right to trade.

Investment flows into Saudi Arabian equities since the market opened to foreigners have been muted. Investors with a QFI licence bought stocks valued at 8 million riyals ($2.1 million) in July, according to the latest data available on the stock exchange website. Foreign investors can also buy Saudi Arabian equities through equity swaps.