Saudi Arabia: A New Financial Era

February 2005 | Market Strategy

The 239% rally in Saudi stocks since the beginning of 2003 is proof, if proof were needed, that liquidity in Gulf markets is in need of a new direction, and the Islamic finance industry is looking like an increasingly viable alternative to the equity and real estate-heavy portfolios currently on offer. Nowhere has this potential been more clearly demonstrated than in the initial public offering (IPO) of Saudi Arabia's Al-Bilad Bank, which will offer an array of financial products and services compliant with Islamic law (Sharia). An estimated 1.7mn Saudis turned out to buy shares in the institution. Opening the

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