The direct result was the emergence of the Saudi Arabian equity market as the largest stock market in the Gulf Cooperation Council region, a formation founded in 1981 between Saudi Arabia, the United Arab Emirates, Oman, Qatar, Kuwait and Bahrain, by which the countries lifted their trade barriers, and worked to support each other and to achieve common goals. Returning however to the Saudi Arabian equity market, by 2007, it had come to be the largest such market in the GCC region. With a total value of 1.11 trillion Riyals (SAR), or an estimated $295.75 billion, the equity market of Saudi Arabia accounts for 30% of the entire equity market in the Gulf Cooperation Council (Mahmood, 2007).
In spite of these advances, fact remains that the Saudi Arabian equity market is still an emergent market, found in its rather early stages of development. The number of investors is fairly limited, as is in fact their very access. The number of companies raising funds through equity is also reduced. Then, the interest and participation of Saudi Arabian investors is limited. While it is difficult to second-hand asses the populous reactions to the growing equity market, the data so far presented points to a situation in which the domestic population is yet unwilling to embrace a highly developed equity market. This is best revealed by the reduced interest in trading shares on the part of both Saudi Arabian companies, as well as Saudi Arabian investors.
Trading operation on the equity market are then sensitive to cultural features, the most relevant example probably being the Eid...
Saudi Arabian Stock Market The objective of this research study is to examine the influences of the Saudi Arabian stock market including such as prices of oil, political factors, regional events, financial crises and how these have impacted the Saudi Arabian market relative to other markets. This work will additionally examine regulatory authority as well as laws and regulations in the Saudi Arabian market including such as efficiency, transparency and the
" (Krapels, 2007) it is additionally related "For the futures-only report, spreading measures the extent to which each non-commercial traders holds equal long and short futures positions. For the options-and-futures-combined report, spreading measures to the extent to which each non-commercial trader holds equal combined-long and combined-short positions." (CFTC, as cited in Krapels, 2007) Krapels states that there are areas where dismissal of causation should not be the projectory in keeping
A number of economists suggest that markets are efficient, but this efficiency is merely assumed. In this regard, Batten points out that, "There is no actual proof. It is virtually impossible to test for market efficiency since the 'correct' prices cannot be observed. To get over this hurdle, most tests examine the ability of information-based trading strategies to make above-normal returns. But the results of such tests do not
The nation also has an estimated budget surplus of over one-hundred billion dollars, making a continued expansion of infrastructure spending as well as stimulus money -- if needed -- and the provision of incentives to future domestic and foreign business development in the country highly likely (Siddiqi 2008). Oil money, though not the sole source of Saudi Arabia's significant wealth and stability, has played a major part in the
Risks in Export Market There is need for companies to develop a professional approach before venturing into the exporting business. The management of the company is supposed to be committed extremely as well as devoting time and money in commencing the campaigns of export. A company is supposed to be ready to face greater competition as well as more stringent rules and regulations concerning products and packaging due to the variance
(Vital Information for Stock Market Investors! What Every Investor Needs To Know) Regarding increases in the stock market, one has seen in the past that rises take place over a long-term, but the terms are very long. When the Dow crashed in 1929, it took 26 years to regain the ground that was lost. Again it fell to a level below 1000 in 1973 and then it took ten years
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