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After Bubble Pops, Saudi Arabia Opens Stock Market To Foreign "Greater Fool" Investors
Shortly after we highlighted the utter ridiculousness of the bubble frenzy in Dubai stocks (30x IPO oversubscription for a firm that did not exist), the Dubai General Financial Markets Index tumbled 30% popping an epic 250% rally since The Fed started QE3. It seems Saudi Arabia is getting nervous at its neighbor's fall and so The Kingdom has decided it needs more great fools to keep its dream alive... and as The WSJ reports today, Saudi Arabia plans to open its $530 billion stock market to foreigners for the first time early next year, a move that will allow the Middle East's biggest economy to attract more international investment and reduce its dependence on oil revenue. Did we just find another China inflation outlet?
The kingdom in 2008 began allowing foreign investors indirect access to the market through swaps, but it has hesitated to open the market fully.
The kingdom is among the last of the big markets to limit international access, but it was expected to open the doors to foreign cash while it rolls out plans to spend hundreds of billions of dollars to build infrastructure and provide employment across the country.
Analysts and investors welcomed the plans, noting that it will cut through red tape and help them avoid fiddly instruments that aim to mimic local stocks.
It's nothing but great news (for EM asset managers)...
"As the largest equity market in the Middle East and North Africa, this will certainly put the region back on international investors' radar and is likely to be transformative for regional equities," said Bassel Khatoun, the head of MENA equities at Franklin Templeton Investments.
Wondering who will be buying? Only the very biggest names (cough Sovereign funds and central banks cough)
"According to draft documentation, QFIIs [Qualified Foreign Institutional Investors] would need minimum assets under management of $5 billion and to have been engaged in securities activities for over five years," said Fahd Iqbal, the head of Middle East research at Credit Suisse. "This is in line with the regulatory authority's preference for long-term investors over short-term speculators."
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Greater Fool hot money flows here we come...
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That chart screams BTFD
not sure if serious - meme
Bullish server farm co-locos.
""This is in line with the regulatory authority's preference for long-term investors over short-term speculators.""
Hot Money is welcome as long as it doesn't try to leave when there are, well, problems...
Sure they'll accept your 'money' now, but good luck getting it out later.
Like when George Jung misplaced his money in Panama?
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Looks good. Best of luck to you.
@..outlet".
comment: oh . oh no.
oh no no. ....
oh? what could stop it?
.
http://jessescrossroadscafe.blogspot.com/2014/07/is-new-brics-bank-chall...
19 JULY 2014
Is the New BRICS Bank a Challenge To US Global Monetary Power?
.
when the whales do battle , the shrimp suffer. true or no?
.
"deep financial markets", interesting term. (derivatives)
here an excellent debate.
the great and infinite scam, ongoing, spilling into
state sanctioned murder.
this chart looks like a mouse trap
i ran into one of those greater fools and his newly-wed wife at the super-market tonight. overheard them talking about 'being a good price at 8'. i asked if they were in the market for local real estate, the woman (of course!) confirmed. all i could think was "i hope you know how to swim, you'll soon be underwater."
I noticed a spike again in real estate agents. But this time it's different...
"According to draft documentation, QFIIs [Qualified Foreign Institutional Investors] would need minimum assets under management of $5 billion and to have been engaged in securities activities for over five years," said Fahd Iqbal, the head of Middle East research at Credit Suisse. "This is in line with the regulatory authority's preference for long-term investors over short-term speculators."
See! the fact that only the "Big Boys" can participate in this offering means it's 100% legit - right?
The "Fab" is learning farsi I bet.
if you trust a fucking Arab with your money you probably and presumably have no fingers left