Saudi Arabia mulls relaxing ownership limits for foreign investors

Agencies
April 27, 2019

Riyadh, Apr 27: Saudi Arabia’s Capital Market Authority (CMA) is considering relaxing a 49 percent limit for foreign strategic investors in shares of listed companies due to increased demand, its chairman Mohammed Al Kuwaiz said on Thursday.

Foreigners currently own 5.5 percent of Saudi equities but that could nearly double by the end of 2020, Al Kuwaiz said in an interview on the sidelines of a financial conference in Riyadh.

“We found most strategic investors are maybe looking to build more sizeable stakes,” Kuwaiz said.

The kingdom has introduced a raft of reforms in recent years, winning endorsements from international index compilers MSCI and FTSE Russell, as it seeks to position its bourse as an international capital markets hub.

An upcoming sale of shares in shopping mall operator Arabian Centres Company, owned by Fawaz Alhokair Group, will be the first offering in the kingdom under Rule 144a, which allows the sale of securities primarily to qualified institutional buyers in the United States.

The Saudi stock market is the Middle East’s largest exchange and has seen an upsurge in foreign fund flows since the start of the year due to the inclusion in the emerging markets indexes.

The country’s Tadawul All-Share Index is up more than 18 percent year-to-date, one of the best performances in the region.

At least six Gulf firms have expressed interest in an additional listing on the Saudi exchange, which is due to release detailed procedures in the next two weeks, the chief executive of the bourse told Reuters during the financial forum on Thursday.

“We have at least one to two companies already in a very good stage of their preparations to submit their files,” Khalid Al Hussan said at the conference.

The exchange will launch the country’s first index futures contracts in the second half of the year, Hussan added, allowing investors to take a view on the direction of the index without having to buy individual shares.

On Thursday the CMA, the country’s bourse and its Debt Management Office (DMO) announced a reduction in fees and commissions to encourage secondary market trading of debt.

The three entities said trading commissions for the Tadawul and the CMA had been reduced, while fees for new offerings and annual registration charges for issuers were also reduced.

The DMO also reduced the par value for government-issued sukuk, from 1 million Saudi riyals ($266,666.67) to one thousand, signaling further government efforts to facilitate access to the bond market for retail investors.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
March 19,2020

New Delhi, Mar 19: The total number of reported novel coronavirus cases in India has climbed to 169, with 30 fresh cases reported from various parts of the country on Wednesday.

The total cases in India include 25 foreign nationals and the three persons who died in Delhi, Karnataka and Maharashtra.

As coronavirus cases continue to rise in India, over 5,700 people, who had come in contact with positive cases, continue to be under rigorous surveillance, the government has said.

Maharashtra has 43 cases, including 3 foreigners, while Kerala has recorded 27 cases which include two foreign nationals. A 28-year-old woman from Pune with a travel history to France and the Netherlands tested positive for Covid-19, a senior official said on Wednesday.

A 68-year-old woman has tested positive for coronavirus in Mumbai. She was in close contact with a Covid-19 patient, who was diagnosed yesterday.

In Rajasthan, three more have tested positive for Covid-19. The new cases have come from Jhunjhunu district. Their samples have been sent to SMS Medical college.

In Maharashtra, a 21-year-old man in Pimpri Chinchwad with travel history to the Philippines, Singapore and Colombo has tested positive for coronavirus. One more person in Ratnagiri has tested positive for Covid-19.

Telangana has reported seven more confirmed coronavirus cases. All the seven are Indonesian national.

Delhi has so far reported 10 positive cases which include one foreigner while Uttar Pradesh has recorded 16 cases, including one foreigner. A man from Noida tested positive on Wednesday, taking the total number to four in Noida.

Karnataka reported two fresh cases on Wednesday, taking the number of infections to 13. The number of cases in Ladakh rose to eight and Jammu and Kashmir three. Telangana has reported six cases which include two foreigners.

One more person has tested positive for coronavirus in Kashmir. The person, with foreign travel history, has been put under isolation. He had arrived in J&K on March 16.

There will be restrictions on public transport, assembly of people and some other measures, in #Srinagar from tomorrow.

Rajasthan has also reported four cases including that of two foreigners. Tamil Nadu, Andhra Pradesh, Odisha, Uttarakhand and Punjab have reported one case each.

Tamil Nadu Health Minister C Vijayabaskar has confined the state's second positive case of coronavirus in the state.

The health minister has stated that the condition of the patient is stable and is in observation.

In Haryana, there are 16 cases, which include fourteen foreigners.

According to the Union ministry's data, 14 people have been discharged so far, including the three patients from Kerala.

Three persons infected with the virus have died so far, the latest casualty being a 64-year-old man from Mumbai with a travel history to Dubai who succumbed on Tuesday.

While a 76-year-old man from Kalaburagi who returned from Saudi Arabia died last Tuesday, a 68-year-old woman in Delhi who had tested positive for coronavirus passed away on Friday night.

The government on Tuesday banned the entry of passengers from Afghanistan, Philippines and Malaysia to India with immediate effect, according to an additional travel advisory.

With coronavirus cases swelling in the country, the government has also banned the entry of passengers from the European Union countries, Turkey and the UK from March 18 till March 31.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
June 9,2020

Jun 9: Prime Minister Narendra Modi wants all 1.3 billion Indians to be “vocal for local” — meaning, to not just use domestically made products but also to promote them. As an overseas citizen living in Hong Kong, I’m doing my bit by very vocally demanding Indian mangoes on every trip to the grocery. But half the summer is gone, and not a single slice so far.

My loss is due to India’s COVID-19 lockdown, which has severely pinched logistics, a perennial challenge in the huge, infrastructure-starved country. But more worrying than the disruption is the fruity political response to it. Rather than being a wake-up call for fixing supply chains, the pandemic seems to be putting India on an isolationist course. Why?

Granted that the liberal view that trade is good and autarky bad isn’t exactly fashionable anywhere right now. What makes India’s lurch troublesome is that the pace and direction of economic nationalism may be set by domestic business interests. The Indian liberals, many of whom are Western-trained academics, authors and — at least until a few years ago — policy makers, want a more competitive economy. They will be powerless to prevent the slide.

Modi’s call for a self-reliant India has been echoed by Home Minister Amit Shah, the cabinet’s unofficial No. 2, in a television interview. If Indians don’t buy foreign-made goods, the economy will see a jump, he said. The strategy — although it’s too nebulous yet to call it that — has a geopolitical element. A military standoff with China is under way, apparently triggered by India’s completion of a road and bridge near the common border in the tense Himalayan region of Ladakh. It’s very expensive to fight even a limited war there. With India’s economy flattened by COVID, New Delhi may be looking for ways to restore the status quo and send Beijing a signal.

Economic boycotts, such as Chinese consumers’ rejection of Japanese goods over territorial disputes in the East China Sea, are well understood as statecraft. In these times, it’s not even necessary to name an enemy. An undercurrent of popular anger against China, the source of both the virus and India’s biggest bilateral trade deficit, is supposed to do the job. But is it ever that easy?

A hastily introduced policy to stock only local goods in police and paramilitary canteens became a farcical exercise after the list of banned items ended up including products by the local units of Colgate-Palmolive Co., Nestle SA, and Unilever NV, which have had significant Indian operations for between 60 and 90 years, as well as Dabur India Ltd., a New Delhi-based maker of Ayurveda brands. The since-withdrawn list demonstrates the practical difficulty of bureaucrats trying to find things in a globalized world that are 100% indigenous.

Free-trade champions fret that the prime minister, whom they saw as being on their side six years ago, is acting against their advice to dismantle statist controls on land, labor and capital to help make the country more competitive. Engage with the world more, not less, they caution. But Modi also has to satisfy the Rashtriya Swayamsevak Sangh, the umbrella Hindu organisation that gets him votes. Its backbone of small traders, builders and businessmen — the RSS admits only men — was losing patience with the anemic economy even before the pandemic. Now, they’re in deep trouble, because India’s broken financial system won’t deliver even state-guaranteed loans to them.

The U.S.-China tensions — over trade, intellectual property, COVID responsibility and Hong Kong’s autonomy — offer a perfect backdrop. A dire domestic economy and trouble at the border provide the foreground. Big business will dial economic nationalism up and down to hit a trifecta of goals: Block competition from the People's Republic; make Western rivals fall in line and do joint ventures; and tap deep overseas capital markets. The first goal is being achieved with newly placed restrictions on investment from any country that shares a land border with India. The second aim is to be realized by corporate lobbying to influence India's whimsical economic policies. As for the third objective, with the regulatory environment becoming tougher for U.S.-listed Chinese companies like Alibaba Group Holding Ltd., an opportunity may open up for Indian firms.

All this may bring India Shenzhen-style enclaves of manufacturing and trade, but it will concentrate economic power in fewer hands, something that worries liberals. They’re moved by the suffering of India’s low-wage workers, who have borne the brunt of the COVID shutdown. But when their vision of a more just society and fairer income distribution prompts them to make common cause with the ideological Left, they’re quickly repelled by the Marxist voodoo that all cash, property, bonds and real estate held by citizens or within the nation “must be treated as national resources available during this crisis.” Who will invest in a country that does that instead of just printing money?

At the same time, when liberals look to the business class, they see a sudden swelling of support for ideas like a universal basic income. They wonder if this isn’t a ploy by industry to outsource part of the cost of labor to the taxpayer. Slogans like Modi’s vocal-for-local stir the pot and thicken the confusion. The value-conscious Indian consumer couldn’t give two hoots for calls to buy Indian, but large firms will know how to exploit economic nationalism. One day soon, I’ll get my mangoes — from them.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
Agencies
February 7,2020

Washington DC, Feb 7: United States on Thursday asked all countries to speak out against mistreatment of Muslims living in China especially in Xinjiang region by Chinese authorities.

Alice G. Wells, Principal Deputy Assistant Secretary for the Bureau of South and Central Asian Affairs, while talking to reporters appreciated the steps taken by Central Asian states to ensure that no ethnic Kazakh, Uighur, Kyrgyz is refouled to China and that the human rights of individuals who reach Central Asia are observed.

"As a matter of principle we urge all countries, not just Central Asian countries, to speak out against human rights abuses that are evident against Muslims in all of China but certainly in Xinjiang. And the countries of Central Asia, several of the countries of Central Asia have deep first-hand knowledge of those abuses given the direct impact it has on their own populations who have loved ones, family members, that are swept up in these detention centers," Wells said.

"We appreciate steps by Central Asian states to ensure that no ethnic Kazakh, Uighur, Kyrgyz is refouled to China, that the human rights of individuals who reach Central Asia are observed. And we also appreciate I think what countries like Kazakhstan can do to promote the free and safe travel of compatriots, ethnic compatriots across the border," she added.

China has been accused of oppressing the Uighurs by sending them to mass detention camps, interfering in their religious activities and sending the community to undergo some form of forceful re-education or indoctrination. However, Pakistan has stayed mum over this issue.

As many as 1 million people, or about 7 per cent of Xinjiang's Muslim population, have been incarcerated in a sprawling network of "political re-education" camps, according to US and UN studies.

In 2018, the New York-based Human Rights Watch released a report accusing Beijing of a "systematic campaign of human rights violations" against Uighur Muslims in Xinjiang.

Beijing says its camps in Xinjiang are "vocational training centres."

Last year, several documents leaked revealed details about Beijing's fears about religious extremism and its wholesale crackdown on Uighurs.

The US had called on the Chinese government to "immediately release all of those who are arbitrarily detained and to end its draconian policies that have terrorised its own citizens in Xinjiang."

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.