Liberalization and Stock Market Performance

Saudi Arabia’s capital market seeks to achieve its outcomes and further develop itself by adopting strategic reforms. These reforms adhere to most international standards, follow the general global perception of capital market development, and encourage participation in the leading global market indices to attract foreign investors and increase capital flow (Saidi, Prasad, and Naik, 2012). This study will address the following questions: • What is the impact of the liberalisation reform -increased foreign institutional investors ownership limit- on the overall capital market performance in Saudi Arabia? • What are the effects of global market indexes - FTSE Russell, MSCI, and S&P- reclassification on the capital market performance in Saudi Arabia? • What are the effects of social norms – the relaxed definition of religious beliefs- on capital market performance in Saudi Arabia?                                                                

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