Nomura, a global investment bank, has been authorised by the Saudi Arabian Capital Markets Authority (CMA) to offer international institutional investors access to the Saudi stock market (Tadawul).

Nomura, in accordance with CMA guidelines, offers access to the Tadawul through total-return swap products, whereby participation securities (P-Notes) are issued to foreign investors, said a statement.

P-Notes give all the economic risk and benefits associated with the underlying security, without the foreign investor actually owning the stock, it said.

Khaled AlKhattaf, chief executive officer of Nomura Saudi Arabia, said: “Tadawul is the largest and most liquid stock market in the Arab world and I am delighted that Nomura is now able to act as a gateway for foreign investors into the Kingdom.

“Fuelled by the government’s five-year, $400 billion infrastructure investment plan, the Saudi economy is expected to continue experiencing healthy growth in the years to come. Major petrochemical, financial and construction companies in Saudi play an important part in supporting this growth, which represents a major investment opportunity. Nomura’s ability to execute transactions for international institutions via swaps, is a significant milestone and will help facilitate the flow of foreign capital into the Kingdom,” he said.

Nomura received its commencement letter to launch its operations for Saudi Arabia in July 2009, allowing it to offer corporate finance and wealth management services for its clients and deal as an agent for overseas securities. In April 2010, it formally opened its office in Riyadh, becoming the first Asian investment bank to provide investment banking services in the Kingdom.
 
Nomura, which has had a presence in the Middle East since 1974, also has offices in Dubai, Doha and Bahrain. – TradeArabia News Service