Financial Times reports that due to the crisis of confidence following the collapse of the Saudi stock market in 2006, not only the Saudi government, but those of the other Gulf States have moved toward a climate of more transparency in finances. the goal is to get rid of insider trading and market manipulation, and to develop confidence in the markets by both domestic and foreign investors. It’s a very good start, and Saudi Arabia has taken the lead.

Gulf regulators crack down on abuse
Robin Wigglesworth

As regional equity markets experience a period of summer turbulence, Gulf regulators are stepping up efforts to repair a reputation for insider trading and market manipulation.

To improve transparency, the Saudi Capital Markets Authority this week started to disclose the names of shareholders who hold more than a 5 per cent stake in listed companies.

This revealed the fact that several government agencies are leading holders of Saudi stocks. One of these institutions, the Saudi Public Investment Fund, owns SR377bn ($101bn) of shares in 18 companies.

Other regulators are moving against insider trading and market manipulation – most notably in the United Arab Emirates – to level the informational playing field for foreign investors.
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