Hendrik du Toit, founder and CEO of Ninety One, South Africa’s largest asset manager, is licking his lips at the opportunities presented by the market reforms unfolding in Saudi Arabia, which is opening up the kingdom’s equity market to all categories of foreign investors.
From February the Capital Market Authority of Saudi Arabia (CMA) is abolishing the qualified foreign investor regime that has governed foreign access in the kingdom over the past decade. That means foreign investors — institutional and individual — will be able to invest directly in shares listed on the Saudi Exchange, or Tadawul, without having to meet qualification thresholds or obtain special regulatory status.
Du Toit said the asset manager welcomes the continued opening of Saudi Arabia’s equity market to foreign investors. Steps that improve market access, liquidity and transparency are important for long-term capital formation and are part of the broader reform agenda under way in the kingdom, he added.
“Saudi Arabia is particularly compelling because of its scale, the pace of reform and the depth of opportunity across public and private markets,” Du Toit said. “The opening of the equity market builds on a series of practical steps to modernise the financial system, broaden participation and attract long-term international capital.
“For active investors, these developments improve both opportunity set and market functionality. We see Saudi Arabia’s market reforms as part of a broader shift in the Middle East towards deeper, more investable capital markets. It is a region the relevance of which in global portfolios is growing, and one where Ninety One intends to participate in a meaningful, considered and long-term way.”
Saudi Arabia is particularly compelling because of its scale, the pace of reform and the depth of opportunity across public and private markets, The opening of the equity market builds on a series of practical steps to modernise the financial system, broaden participation and attract long-term international capital.
— Hendrik du Toit, CEO of Ninety One
Ninety One, which has more than R3.5-trillion in assets under management, increased its presence in the Middle East last year, opening offices in Saudi Arabia and the United Arab Emirates (UAE) as it makes inroads in the two asset-rich jurisdictions.
Du Toit said the appeal of Saudi Arabia and the wider Middle East is the region’s combination of capital, ambition and execution.
He said governments and institutions in the region are investing heavily in infrastructure, diversification, human capital and market development, creating opportunities across asset classes. But he added that success also requires local insight, strong relationships and a long-term mindset.
“We have been clear that the Middle East is an important growth region for Ninety One, and this is not a theoretical interest. We already have a physical presence in the region, with offices in the UAE and Saudi Arabia and dedicated teams on the ground. That local presence is deliberate: it reflects our belief that proximity matters when investing in and partnering with fast-evolving markets,” Du Toit said.
“Saudi Arabia is particularly compelling because of its scale, the pace of reform and the depth of opportunity across public and private markets.
“The opening of the equity market builds on a series of practical steps to modernise the financial system, broaden participation and attract long-term international capital. For active investors, these developments improve both opportunity set and market functionality.”
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