Saudi Capital Market Authority relaxes securities market for foreign investors


Joe Baker
Joe Baker
Senior Copywriter
Joe is a Senior Copywriter working on reports, news and analysis. Previously, he worked as a B2B copywriter, journalist and editor covering a broad range of topics, including technology, transport,… Read more
  • The Saudi Capital Market Authority has made accessing it easier for foreign investors to access the country's securities market. 
  • This change will have a particular impact on qualified foreign investors.
  • The Kingdom's Vision 2030 strategy aims to make Saudi Arabia's securities market an attractive investment opportunity. 

The Saudi Capital Market Authority (CMA) has approved new rules to make it easier for qualified foreign investors (QFIs) to invest in the Saudi securities market. The rules are designed to streamline the entry procedures for investors. 

The CMA has revised the instructions for investment accounts, amended the Companies Law for listed joint stock companies and updated the glossary of terms used in the regulations and rules of the CMA. 

The Kingdom's Vision 2030 strategy seeks to make Saudi Arabia’s securities market an attractive destination for investment. The country has implemented structural reforms that increase economic growth and maintain financial stability and sustainability, thus making it an attractive place for foreign investment. 

Capital market institutions can now offer discretionary portfolio management services to all foreign persons, allowing them to invest in securities listed on the primary market. 

A single regulatory document will gather all regulations, instructions and definitions related to foreign investment in securities. The document aims to improve the rules and make it easier to understand the regulations around foreign investment in securities easier. 

It is anticipated that adopting these regulations will increase liquidity in the Saudi market and access to capital, alongside a more diverse portfolio of investments. In turn, this will make it more appealing to investors and will enhance the country’s global standing. 

The amendments are intended to make it easier for QFIs to meet their disclosure requirements and enter the Saudi capital market by reducing the differences between QFIs and other investment categories. 

The new mechanism will make it easier for foreign investors using online money transfer services to move funds between their accounts and the Saudi securities market, reducing costs and improving transaction times. 

It will help attract more foreign investment into the Saudi market, as investors can make international money transfers more conveniently and confidently. 

In 2018, the CMA revised the rules, resulting in a rise of 179% increase in QFIs from 2018 to 2022. Consequently, the foreign investors' ownership ratio of the total market value of the free float increased from 3.77% in 2018 to 14.21% by the end of 2022. 

For investors interested in making international investments, the FXC's online money transfer tool can compare the different methods of transferring money overseas. 

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