Riyadh, Saudi Arabia – Saudi Arabia has approved new rules aimed at boosting foreign investment in the country’s securities market.
The rules framed by the Capital Market Authority (CMA) include those for Foreign Investment in Securities, amendments to the Investment Accounts Instructions, amendments to the Implementing Regulation of the Companies Law for Listed Joint Stock Companies, and amendments to the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority.
They aim to make it easier for foreign investors to enter the Saudi capital market by consolidating regulations governing foreign investment into a single document. They also aim to reduce differences between qualified foreign investors (QFIs) and other investor categories in the Saudi market.
The rules remove several requirements previously placed on QFIs, including the need to apply for a qualification and assessment agreement. Instead, the only requirement is for QFIs to open an investment account in accordance with the Investment Accounts Instructions issued by the CMA. The changes also include the removal of requirements around the duration of swap agreements and prior notification to the CMA.
The country will also allow foreign natural and legal persons to invest in securities listed on the main market through discretionary portfolio management by capital market institutions. This is expected to boost liquidity in the Saudi market, deepen its attractiveness, and enhance its global status.
The CMA’s strategic plan aims to position the Saudi capital market as the main market in the Middle East and one of the world’s leading financial markets. The changes are in line with Saudi Arabia’s Vision 2030, which seeks to make the country an attractive destination for investment and diversify its sources of income.