To instigate foreign investment, increase the attractiveness and efficiency of the capital market, and enhance regional and international market competitiveness: The Capital Market Authority Approves the Rules for Foreign Investment in Securities
RIYADH, Kingdom of Saudi Arabia, May 05, 2023 (GLOBE NEWSWIRE) -- The Capital Market Authority ("CMA") approved the Rules for Foreign Investment in Securities (the “Rules"), 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 approved Rules only requiring the QFI to open an investment account in accordance with the Investment Accounts Instructions issued by CMA.
- This is to ensure the obligation of the capital market institution to make sure that the QFI is meeting all relevant qualification conditions.
- The rules will also contribute to the transformation of knowledge and experiences in local capital institutions and investors, thereby enhancing the role played by institutional investors in the Saudi capital market.
- In addition, the foreign investors' ownership ratio of the free float total market value increased from 3.77% in 2018 to 14.21% by the end of 2022.