Watan investment and Securities announced conducting a foreign investment transaction through a swap agreement in the Saudi securities market “Tadawul”. The transaction was conducted after Watan Investment provided the Capital Market Authority (CMA) with all necessary contracts and documents and receiving the required approval to conduct the swap agreement. Watan Investment is the first independent Saudi Investment bank with no foreign partner or a branch of a foreign investment bank or a subsidiary of a local bank to conduct a swap agreement in the Saudi securities market.

The transaction took place after the CMA announced that it would allow licensed companies to enter into swap agreements with foreign investors, persons and institutions, not residing in Saudi Arabia. The purpose of allowing the swap agreements is for listed companies to avail the economic benefits of having foreign investors while the ownership of the actual stock remains in the holding of the licensed company according to the terms and conditions announced by the CMA.

Dr. Ihsan A. Bu-Hulaigah, the Chief Executive of Watan Investment, announced that the company entered into this agreement with a large reputable international company that holds high international standing. The company was keen to enter the Saudi securities market, which is the largest securities market in the Middle East and is ranked number eleven internationally in market capitalization.

Dr. Ihsan clarified that the agreement is positive for the Saudi market and for the foreign investor alike when looking at the condition of the market today. The companies in the Saudi securities markets currently provide attractive multiples for investors in addition to positive performance by most of the companies and the solid the Saudi economy.

Bu-Hulaigah went on to say with this agreement Watan Investment is a contributor to the protection and reinforcement of the Saudi securities market and attracts institutional investors with a long history in the world of investment.

Dr. Bu-Hulaigah completed his comments by saying “We at Watan Investment are pleased with our achievements in such a small time period since the company started operations in 2007 and especially in the area of swap agreements. We have worked hard to establish a robust infrastructure suitable for Watan Investment’s clients through a dedicated team of experienced investment professionals. These are the points that attracted our international clients to Watan investment because they know that we are creating a professional institution with a solid infrastructure and base”.