BlackRock, the world's largest asset manager, has been granted regulatory approval by Saudi Arabia to trade local stocks, the company said in a statement on Tuesday.

BlackRock "received a qualified foreign investor licence which was obtained in order to launch the iShares MSCI Saudi Arabia Capped ETF [exchange traded fund]," the company said in a statement.

The firm launched the ETF last month, with its top exposures to financials, materials and telecoms.

BlackRock joins Citigroup, HSBC, and Ashmore Group, in the list of institutional investors that can directly trade the market since the kingdom opened up its bourse to foreigners on June 15.

Foreign investors previously could only invest in Saudi Arabia through swaps or exchange traded funds.-Reuters