Saudi Arabia’s stock market is gradually moving toward “stability” as the country braces for foreign investments to help it with untoward fluctuations.

To attract foreign capital, Saudi Arabia is for the first time in its history allowing foreigners to invest in its economy, mainly the stock market.

A law that would allow investors to put their money in the country was ratified late last year and will come into effect in less than two weeks from now.

Saudi media, including the London-based al-Sharq Awsat daily, quoted experts as saying that the stock market in Saudi Arabia is gradually becoming “stable,” despite Saudi markets closing on Saturday slightly lower than the previous trading week and the one before that.

The shaky trading was because investors were growing wary of the ongoing military campaign led by Saudi Arabia against neighboring Yemen and a string of other bad economic news, including slumping oil prices, which also weighed in when markets opened on Sunday.

Traders in the Arab kingdom are anticipating money from foreign investors because the move can be positive for the kingdom that only depends on oil exports as its main source of income.

Thursday was the last trading day of the week in Saudi Arabia and the country’s only Tadawul index closed at 9757 points.

This month alone the country’s stock market lost 77 points and has been overall on a losing streak since the beginning of this year. The reason for this situation was political developments and a decline in cash flow, according to al-Sharq Awsat.

HDS/SS