Major investment banks say they've begun trades under new rules that for the first time give foreigners access to Saudi Arabian stocks. The head of HSBC Holdings PLC's Saudi Arabian subsidiary says the bank will begin offering similar trades in the coming days. Riyadh-based divisions of Morgan Stanley Saudi Arabia (MSSA) and Deutsche Bank AG say they carried out the first such trades, known as swap agreements, on Tuesday. While MSSA retains legal ownership of the shares, the economic benefits of the Saudi companies' shares are transferred to the investor, said a MSSA official. Jamal Alkishi, CEO of Deutsche Securities Saudi Arabia, said: “This is a momentous occasion for Deutsche Bank as a whole, and specifically for our operations in Saudi Arabia - the largest equity market in the Middle East and one of the most important emerging markets.” Saudi Arabia's Capital Market Authority announced the new rules a week ago. Investors have been eager to invest more directly in the Saudi stock exchange, the largest in the Middle East.
