Saudi to set up index fund for foreigners

CAIRO

The head of Saudi Arabia's market regulatory agency says the country will launch a stock market index fund by the end of March into which foreigners can invest.

Capital Market Authority head Abdulrahman al-Tuwaijri, in comments published in Sunday's edition of al-Eqtisadiyah newspaper, that despite the move, Saudi Arabia is still reluctant to allow direct foreign investments in the exchange.

Foreigners are currently able to invest in the exchange -- the Arab world's largest -- through swap agreements, but are barred from direct ownership.

Analysts say the new fund marks a gradual, but clear, step toward opening the Saudi market to foreign investments.