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Submitted By alhamedi
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Globalization impact on the Saudi economy has been very substantial, and the effects of it in the future are likely to be even greater. Not only have the structures of, and effective operation and management of, the domestic economy has been critically affected, but also the balance between the different economies, the way in which they all relate to the rest of the world, and the potential for development. It is already clear that there are major winners and losers in this process, in terms both of economic sectors

The impact of globalization on Saudi capital market
In reaction to the global technological advancements in business, the Saudi capital market is being forced to update, consolidate, and expand its activities.
Globalization has affected Saudi capital market in the following:
2.1. Market Deregulation
There are no restrictions on foreign investment, no restrictions on foreign exchange and repatriation of capital and profits, and no taxes on capital gains, dividends or repatriation of earnings.
In 1997, foreigners with or without local participation, were allowed to participate in the Saudi equity market through the Saudi Arabian Investment
Fund (SAIF), instituted in London. Since November 1999, foreigners have also been allowed to participate in the Saudi equity market through open-end
__
mutual funds offered by Saudi banks. GCC citizens are permitted to directly invest in the Saudi equity market. Foreigners enjoy full market access and suffer no restrictions on capital mobility or convertibility. Saudi Arabia has no foreign exchange curbs, allow companies to carry forward losses indefinitely, effectively relieving businesses of the tax burden until they become profitable.
The Kingdom is signing agreements with an increasing number of with countries, to provide relief from double-taxation.
The Kingdom is drastically revising its

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