With high levels of liquidity in the marketplace, investors within Saudi Arabia have the resources and an increasing desire to break away from their traditional oil-based industries to a more diversified portfolio. For many years their only option was to invest overseas but, increasingly, Saudi Arabian investors are looking for domestic investment opportunities. Sectors of particular interest and growth include banking, telecommunications and the media.
Despite the Saudi stock market’s strong start, the spectacular 52% decline of the Tadawul All Share Index (TASI) in 2006 may suggest to some that it is not yet a market worth investing in. To those who already invested, it is a harsh lesson learnt.
