Trades are currently settled on the same day, creating problems for some foreign institutions.
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Saudi Arabia announced a string of reforms to its stock market that could attract billions of dollars of fresh foreign money and smooth sales of state assets as the kingdom grapples with damage to its finances caused by low oil prices.All foreign investors combined will still be limited to owning 49 percent of any single firm.Saudi Arabia wants to join international index compiler MSCI's emerging markets index as soon as in 2017, because many global funds base their investments on that index.A deeper reason is that despite last June's opening to foreign institutions, overseas funds have so far not been very keen to put their money into Saudi Arabia; total direct and indirect foreign investment accounts for less than 1 percent of the $408 billion stock market, bourse data shows.At the end of 2015, only nine foreign institutions had obtained licenses to invest directly in the Saudi market.
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