In July of 2014, the most important event of in the history of the financial markets in the GCC (Gulf Cooperation Council) has been announced. Saudi Arabia has approved to open its equity market to direct foreign investment and CMA has drafted rules for Qualified Foreign Institutions. Its equity market (Tadawul) valued around USD 530 billion and which will open an opportunity for the largest global investment funds to inject their funds into one of the most lucrative emerging markets. However, once the announcement hit the news, Tadawul market index hit the 10,000-point for the first time in six years as the market react with optimism over the news. The Saudi Stock market was limited to Saudi and GCC investors only and for those outside of …show more content…
The purpose is to avoid any kind of market collapse that seen elsewhere in the region during the financial crisis. Saudi Arabia lost as much as $73 billion worth of foreign reserves in 10 months period. However, MSCI index which tracked by investors managing up to $9 trillion, said it would include Saudi Arabia to emerging-market indexes if open its market to direct foreign investors. It may be added to MSCI’s emerging-markets index at the earliest in 2017. HSBC Holdings and JPMorgan Chase & Co are one of the banks that will profit after the market opening. HSBC that owns 40 percent of Riyadh-based Saudi British Bank is ranking Saudi Arabia as one of the five key markets in the MENA region with UAE, Oman, Qatar, and Egypt. According to its annual report, HSBC made a profit of $438 million from Saudi Arabia last year which makes biggest operation for HSBC second only to UAE. JP Morgan, Bank Of America, Standard Chartered and Credit Suisse Group have all been working in building local teams after the news of opening the equity market for foreign investors. “International banks with an existing presence on the ground and a track record in the kingdom will have a first mover advantage when the stock market opens,” says Khatoun, of Franklin Templeton. “The opportunity of the opening is sizable enough to attract more international players,” 12 local banks are also will benefit from the inflow of international capital. Three of these banks already have joint venture with global investment banks which will make easier for the already existing global banks to have the advantage of first movers after the opening of the equity market (Hankir,
How does one region have a prolonged battle for authority, and conflict with the opposing force for eternity? After the Ottoman Empire sided the Central Powers during World War I, they didn’t foresee that they would lose their empire based off of this decision. European countries that won the war came in and partitioned the Middle Eastern region. Soon after the Sykes-Picot Agreement was established, and the Arabs felt betrayed because they weren't granted their deserved independence. The new borders set caused continuous conflict because of the artificial blending of different ethnic and religious groups. International conflicts have contributed to regional conflict in Southwest Asia by forming borders without regards to the different ethnic and religious groups, creation of the state Israel in 1948, and the U.S. being involved in the matters of the Middle
The fact that majority of the capital funds was in the form of portfolio capital instead of foreign direct investment (FDI) had also worsen the situation. The ratio of portfolio capital to FDI had increased substantially from 1:1.3 in 1990 to 1:6.5 in 1993. Given the volatile nature, portfolio capital tends to respond with greater speed to changes in the environment.
On November 13th, 2015 the world was shocked to discover that terrorists had attacked Paris, however in the latest string of terrorist attacks one must pose the question of whom terrorism impacts the most. Traditionally, in terrorism the victim is the group or region in which the attack is target. Recently, we have seen a large shift in the brunt of the backlash being placed toward minority religions that are simply blemished by small groups of extremists, thus painting an unjust image of the religion entirely. In the case of the Paris attacks, the extremist group, ISIS, has showcased views drastically different than a majority of Muslims, yet the media and millions of people globally have created the misconception that such an anomalistic
Although the United Sates and Saudi Arabia present the United States and Saudi Arabia’s relationship as excellent, there are actually two nations who have bitter disagreements but who allies through oil. The only thing that has held this alliance together is the US dependence on Saudi oil. The United States has felt and still fells that it is a necessity to have bases present in the Middle East to protect oil, and silently to protect Israel. The relationship began in 1933 when Standard Oil of California signed an agreement with the Saudi government. In 1943 FDR affirmed that the defense of Saudi Arabia was a vital interest to the United States and moved troops into the region. Future presidents would emulate this declaration and mobilization of troops to Saudi Arabia. Again in 1945 Abd al Aziz, the Saudi king, and FDR would cement this alliance, on a US warship in the Suez Canal. Soon after, airfields were constructed at Dhahran and other spots over Saudi Arabia; beginning a long tradition of US military facilities in Saudi Arabia. Abd al Aziz was the first of his line of successors to meet with US presidents. The relationship was only strengthened with the onset on the Cold war, as the US used the bases in Saudi Arabia as potential air force launch sites to the USSR and constructed more military facilities. In 1941 Harry S. Truman made another assertion of Americas protection and alliance with Saudi Arabia to Abd Al Aziz. Truman stated that “support for Saudi Arabia’s territorial integrity and political independence was a primary objective of the United States.” (Countrystudies.com) Another stipulation of this pact was that the US established a permanent military training mission in the Saudi Arabia. That mission lasted until 1992. Soon after the pact between Truman and Aziz was agreed upon the US-Saudi relationship would endure its first major disagreement. On May 14th, 1948 Israel was declared an independent state in the former Arab dominated Palestine. Israel’s independence was backed the United States. Saudi Arabia refused to acknowledge the country of Israel and to engage in any relations with them. The Saudis concerns of the Israel-US relationship were reinforced in the 1970’s and 1980’s when the US sold arms to Israel, but refused to sell arms to Saudi Arabia. In some cases congressional leaders refused to sell arms to Saudi Arabia on the grounds that Saudi Arabia might use them against Israel.
The events that unfolded on September 11th and the days that followed also profoundly effected the stock market. It is the purpose of this paper is to examine what happened to both the Dow Jones Industrial Average and the NASDAQ after September 11th and how it is similar to events such as the bombing of Pearl Harbor, the Oklahoma City bombing, and the Gulf War in terms of how the stock market experienced a blow and bounced back after a while.
The coins made in gold, silver and bronze were traded during Roman Empire and the shortage of coins created a barrier for money circulation. However with the establishment of paper money, a sophisticated banking, global clearing system and electronic money, the global financial system evolved with a worldwide framework of legal agreements. In the Global Financial market, foreign currencies issued by the world, countries are traded by the buyers and sellers using currency exchange rates. Now a day, it is very common practices of companies in one country to raise capital in a foreign country by listing their stocks on major foreign exchanges given the growth of equity markets are becoming more globalized (SNHU, 2015).
The composition of GDP by Industry is 66. 9% in Saudi Arabia, which is four times greater than the United States as the GDP by industry in the United States is just 19. 1%. The per capita Gross Domestic Product in Saudi Arabia is $22, 939. 18, whereas, in the United States, it is $ 45, 759.46 per capita. Thus, the per capita GDP in the United States is twice as much as the per capita GDP of Saudi Arabia. The GDP by purchasing power parity is $ 883. 70 in the Saudi Arabia, whereas, it is $ 16. 24 in the United States, which is 18 times greater than the GDP by purchasing power parity of the Saudi Arabia (CIA,
If the world, consisting of the consciences of over six billion people, wants the market to grow, then the market will grow. With international interest and knowledge, we can eliminate fraud and stock pooling to raise stock prices. The markets will be more honest, and they will grow at a rate that we need them to, in order to continue with our exceptional economic growth rate.
Al-Madinah was a mixed gendered, free school in Derby for children aged 4-16 years that hit the news headlines because the staff, Ofsted and The Department Of Education (DOE) failed the students resulting in the school being shut down.
Macroeconomic factors, like Gross Domestic Product, exchange rate, interest rate, inflation rate, money supply, economic crisis and economic liberalization affects the stock market returns in Malaysia. Stock market is critically important to our economy as it channels funds and capital from those who have excess to firms, corporations or individual that can use them more effectively. Several analysis were used to determine the accurate stock market returns and their relationships with the macroeconomic determinants in Malaysia. Precise information about the stock market returns volatility is crucial for decision making by firm from different industry to understand deeper about how Malaysia stock market works to be able to build the right strategy in handling their funds and creating better management portfolio and financial plans. Leverage effects, which stated that negative news and announcements brings bigger volume of shocks to stock market compared to positive news, causing volatility in stock market was found to be exist in Malaysia stock market. Several analysis such as dynamic stock returns volatility estimation, Exponential Generalized Autoregressive Conditional Heteroskedasticity (EGARCH), generalized least squares (GLS) regressions and Random effects (Feasible Generalized Least Squares)
In 1975, the Islamic Development Bank opened in Saudi Arabia and gave the islamic finance industry an international presence. It recruited member countries and offer them financial products to promote economic and comunity development.
among numerous users. The roles of the stock market are mainly to facilitate and encourage the mobilization of funds, direct them towards efficient economic activities, provide adequate liquidity for investors and encourage the creation of large-scale enterprises, The Kuala Lumpur Stock Exchange Index (CI) is the most popular indicator of the Kuala Lumpur stock market performance. The CI represents share prices of 100 Corporations. These companies are chosen because their operations cover a broad spectrum of economic performance in Malaysia and more significantly reflect stock market activities with fair accuracy, Stock prices depend on the supply and demand for the stock, it causes by the factors that stock prices to be more volatile is limited supply of new issues despite of strong demand for the stocks. This restriction of supply leads to more price fluctuations, which are common to all stock markets. However, two things prevent an infinite price increase in the stock market. Firstly, the amount of money available in any country is finite. As the bull market proceeds, more and more of the country’s savings are invested in the stock market and eventually the people involved might face liquidity...
Individuals have an intuitive desire to stand out among others. They constantly strive to attain wealth, position and honor through their work. However, running a successful business nowadays is a very hard goal to achieve especially for individuals that work in the airline industry due to its natural competitive environment. There are numerous airlines that are struggling to survive. It is very unlikely to hear about young airlines achieving success at an early stage of their operations. Nonetheless, Air Arabia, a young airline that started operations in 2003, shows promising results that predict its success in the future and its ability to be competitive airline in the GCC airline industry due to its implementation of a successful growth strategy that correlates with the airline’s strengths, weaknesses, opportunities and threats, and due to its strong financial performance.
Perfume sales in Saudi Arabia , the Gulf’s largest economy and the UAE reached 827.5million dollar and 205.8million in 2010.
The Islamic market is being very profitable, but the effectiveness of the operations has been relatively limited due to lack of development of the business unit due to the short existence of the moderm history.