The Saudi Market Authority announces changes to the rules for foreign investment in titles

The board of the Saudi Capital Market Authority has issued the decision to publish draft amendments to the rules governing foreign investment in titles, for public consultations in merit for a period of 30 calendar days ending on 06/16/1444 AH corresponding to 09/01/2023 AD

The authority said in a statement today, Sunday, that the most important main elements of the project are the development of the qualifying conditions and the facilitation of the requirements to be met by the qualified foreign investor, including the cancellation of the application requirements of qualification and the qualification agreement assessment of the foreign investor and meeting the requirements for opening the investment account in compliance with investment account instructions.

It also provides for the exemption of some categories from the requirement of the volume of assets under management. And adding a new channel for foreign investment in securities listed on the main market, allowing foreign individuals and legal entities to invest in securities listed on the main market through investment portfolios managed by financial market institutions.

Furthermore, by developing the conditions for foreign non-resident investment in securities listed through exchange contracts, including the cancellation of the condition imposed on the duration of the contract, as well as the abolition of the obligation to notify the Authority before the conclusion of the exchange contract, in accordance with the provisions ofart. the authority.

It is expected that these amendments will be reflected in stimulating investment, increasing the attractiveness and efficiency of the financial market, improving its competitiveness at regional and international level and supporting the local economy by attracting new foreign capital. in particular in market offerings, improving the liquidity of the market, increasing its attractiveness, strengthening the position of the market globally and transferring knowledge and expertise to institutions, local finance and investors, which positively affects the increase in foreign ownership of listed Saudi stocks.

It is worth noting that the draft amendment of the rules governing foreign investment in securities for public consultation aims to develop the provisions governing foreign investment in securities and facilitate access to regulatory frameworks governing foreign investment in titles collecting the regulatory provisions for that in a regulatory document and facilitating procedures for foreign investors to enter the Saudi financial market and making it more available in other investment categories.

The Authority communicated that it had received the opinions of the interested parties and their observations through the unified telematic platform for the collection of opinions from the public and public bodies affiliated with the National Center for Competitiveness (collection platform) through the link istitlaa. ncc.​ or the appropriate form by email @Laws.Regulations

He added that all opinions and comments will be treated as well studio. For the purpose of approving the final version of the project.

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