Stock Market Development and Privatization in Saudi Arabia

ENTERPRISES (S0Es) IN SAUDI ARABIA: A RESEARCH PROPOSAL OVERVIEW

The introduction of the privatization of state-owned enterprises (SOEs) and the development of the stock market in Saudi Arabia are relatively new occurrences in the country. Each development holds the potential to reshape and refocus the functioning of the Saudi economy. This paper develops an overview of a research proposal for the investigation of the interrelationships between these two phenomena in Saudi Arabia.

The privatization of SOEs, in 2003, has a track record in a variety of countries that cover the gamut of economic characteristics, economic objectives, and economic resources among the developing economies. The success of the privatization programs in the various countries has not been uniform; however, few privatizing economies have reverted to the re-nationalization of SOEs. In many of the countries where the privatization of SOEs has occurred, the development of a stock market has been a concurrent activity. Again, the success of stock market development has varied across countries; however, few economies have closed stock markets once developed.

Studies of the relationship between the privatization of SOEs in a country and the success of stock market development in a country have produced mixed results. The findings of the studies generally

. . .
bility of making better investment decisions. The purpose is to assure the public availability in an efficient and reasonable manner on a timely basis of reliable, firm-oriented information material to informed investment, and corporate suffrage decision-making. The assumption behind such a rationale is that investors provided with sufficient quantities of reliable information will be able to protect themselves. In actuality, the requirement of disclosure is, in itself, a form of protection. Disclosure requirements vary widely in the region. Disclosure requirements tend to be less stringent than in other economies. In 2002, the stock market continued to grow in Saudi Arabia, while the privatization program continued in a parallel activity. There have not been, however, any studies of the linkages between stock market development and the privatization of SOEs in Saudi Arabia. The proposed research study will comparatively analyze several characteristics of the privatization program in Saudi Arabia to assess their relative effects on the development of the stock market in Saudi Arabia. The development of the stock market in Saudi Arabia will be the dependent variable in the analyses of the relevant data. The operationaliza
. . .

Some common words found in the essay are:
Saudi Arabia, Motivation Study, Saudi Arabian, Phillips-Perron Test, NCFEI Sectors, MacDonald Marsh, saudi arabia, Monetary Authority, Middle Eastern, stock market, Sectors Index, privatization soes, VAR Assessment, stock market development, development stock market, market development, development stock, market saudi arabia, market saudi, stock market saudi, soes saudi arabia, soes saudi, independent variable, stock markets, development privatization,
Approximate Word count = 1417
Approximate Pages = 6 (250 words per page)

More Essays on Stock Market Development and Privatization in Saudi Arabia