Middle-east Arab News Opinion | Asharq Al-awsat

Saudi Arabia Further Approves Amended Rules for Foreign Investments | ASHARQ AL-AWSAT English Archive 2005 -2017
Select Page
Media ID: 55356242

Saudi Arabia

Riyadh – Saudi Capital Market Authority (CMA) Board approved the final amended Rules for Qualified Foreign Financial Institutions Investment (QFFII) in Listed Securities.

The approval comes after the draft of QFFII was published on the CMA’s website for 30 days for consultation.

CMA clarifies that it has studied all opinions, suggestions and recommendations received from investors and specialists.

The amended rules include 24 Articles comprising procedures, requirements and conditions for the registration of the qualified foreign investors with the CMA to invest in the listed securities, and to specify their obligations and obligations of authorized persons.

The regulations will cut the amount of assets foreigners must have under management to invest directly in the nation’s stocks from SR18.75 billion ($5 billion) to SR3.75 billion ($1 billion).

The regulations also included the option for qualified foreign investors to engage with either Saudi or non-Saudi manager to oversee their investments, including those from countries of the Gulf Cooperation Council (GCC).

According to the CMA statement, the regulations will be put into action as of September 04.

Furthermore, CMA will announce the updated Frequently Asked Questions (FAQs) on the rules, which addresses questions that CMA received during the preparation of the rules.

CMA cleared that the rules allow qualified foreign financial institutions to exercise all the rights associated with the listed securities, including right to vote and trading rights issues in the market.