Cheap Stocks and Market Reforms Draw Foreigners to Saudi

A rush of reforms is making it easier for foreigners to invest in Saudi Arabia, boosting confidence among investors that the country’s stock market will one day compete with global rivals even as equities currently underperform and trading volumes decline.

Announced over a single week in July, a series of policy changes will allow residents of Gulf Cooperation Council countries to more freely trade Saudi stocks, give foreign firms the option of launching depositary receipts and ease rules for funds and asset managers dealing in equities.