As part of the Capital Market Authority's (CMA) efforts to further develop the capital market in the Kingdom of Saudi Arabia, and based on its strategic objectives to stimulate investments, expand the institutional investments base, and increase the attractiveness of the capital market for all investors, CMA's Board has issued today its resolution to approve the updated Frequently Asked Questions (FAQs) on the Rules for Qualified Foreign Financial Institutions Investment in Listed Securities (Rules). This document aims to provide answers to most of the commonly asked questions that may be raised by foreign investors, authorised persons and other relevant parties in relation the Rules.
The CMA has recently made enhancements related to foreign investment in the Saudi Capital Market, which includes the recent enhancements to the Rules which aim to ease the qualification requirements for qualified foreign investors, their affiliates, foreign portfolio managers and their managed funds. In addition to the CMA's resolution for allowing foreign investors to invest as ultimate beneficiary through Swap agreement account and as qualified foreign investor simultaneously during the first twelve months of opening the qualified foreign investor account. Provided that the total investments through swap transactions or through the QFI account or both must not reach (10%) of the shares of any issuer whose shares are listed or convertible debt instrument of the issuer. The enhancements also included expanding the jurisdictions that apply regulatory and monitoring standards equivalent to those of the CMA or acceptable to it in accordance with the Rules, to pursuance of what Financial Action Task Force (FATF) issues in regard to non-compliant or non-cooperative countries without contradicting with the related laws, regulations in force in the Kingdom, and The Permanent Committee for Anti-Money Laundering. In addition to.
The updated Frequently Asked Questions on the Rules for Qualified Foreign Financial Institutions Investment in Listed Securities can be viewed via this link.
