‎Higher interest hurts several sectors, Saudi market has no steady downtrend or uptrend: Alhussan

‎Higher interest hurts several sectors, Saudi market has no steady downtrend or uptrend: Alhussan

Khalid Alhussan, CEO of Saudi Tadawul Group Holding, said higher interest rates hurt several sectors, including real estate and stock markets and this is not only in Saudi Arabia.

Liquidity is affected by several factors, such as borrowing. The new listings in the Saudi market in 2022 and the ones expected this year may be a race for liquidity, Alhussan added in a lecture organized by King Saud University.

“We could view weak market liquidity in general, whether in the daily trading or undersubscribed initial public offerings (IPOs), as risky if there is a problem in any of these systems, such as facing a very tight liquidity, investors’ inability to liquidate their portfolios through the market, or unsubscribed IPOs,” the CEO added.

“We could view weak market liquidity in general, whether in the daily trading or undersubscribed initial public offerings (IPOs), as risky if there is a problem in any of the two systems – either due to very tight liquidity and investors’ inability to liquidate their portfolios through the market, or unsubscribed IPOs,” the CEO added.

Today, both systems function properly, as new offerings are strongly covered, while market turnovers are satisfactory compared to regional or emerging peers.

He added that there is no