Saudi’s CMA approves rules for foreign investment in securities

Saudi’s CMA approves rules for foreign investment in securities

RIYADH — The Capital Market Authority (CMA) approved the rules for foreign investment in securities. It also endorsed 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, which shall be effective as of the date of their publications.

The approval of the rules, instructions and glossary aim to develop the provisions regulating foreign investment in securities, facilitate access to the regulatory frames governing foreign investment in securities by collecting the regulating provisions in a single regulatory document, as well as facilitating qualified foreign investors’ (QFIs) entry procedures to invest in the Saudi capital market.

The last amendments comprised considering facilitating the QFIs’ requirements, facilitating disclosure requirements and continuous obligations to ease Saudi capital market entry with the aim of minimizing the differences between QFIs and other investor categories in the Saudi market.

The amendments also comprised developing the qualification conditions that must be met by the QFI to invest in the shares listed in the main market and removing the requirements on application for qualification and QFI’s assessment agreement. The approved rules only