Saudi Arabia’s Capital Market Authority Seeks to Boost Foreign Investments with Proposed Amendments
In an effort to attract more foreign investments and improve market accessibility, the Capital Market Authority (CMA) in Saudi Arabia is inviting feedback on proposed amendments to account procedures.
The proposed changes aim to align the Kingdom’s capital market with global regulatory and technological advancements, making it easier for local and international investors to open accounts.
Expanding Investment Opportunities
The CMA is looking to diversify the investor base by opening doors for non-profit organizations and endowment funds to invest, broadening the scope of investment opportunities.
The consultation period will last for 30 days, ending on Dec. 20.
Enhancing International Presence
Key changes include the introduction of a new category allowing individual foreign investors residing in the Gulf Cooperation Council countries to invest in shares listed on the Saudi main market directly.
“As global markets continue to expand and evolve, the next phase necessitates enhancing the international presence of the Saudi capital market and increasing its appeal to investors across the region,” according to data revealed by CMA to Arab News.
Improving Protections for Retail Investors
The CMA is also seeking public feedback on amendments to investment fund regulations in the retail market to improve protections for retail investors. These changes aim to attract more foreign capital, enhance liquidity, and support the local economy.
Facilitating Access to the Market
The proposed amendments will provide investors with direct access to the main market, simplifying the process for opening and operating investment accounts for various types of capital market institution clients.
These reforms reflect the Kingdom’s ongoing efforts to modernize its capital market, making it more inclusive, competitive, and appealing to local and international investors.
Supporting Financial Sector Development
On Nov. 13, CMA approved its largest regulatory overhaul to date for the sukuk and debt instruments market, marking a significant step in the country’s financial sector development.
The newly approved changes introduce key amendments to the rules on the offer of securities and continuing obligations, particularly related to the issuance of debt instruments.
These adjustments are designed to attract a wider range of issuers and foster deeper investment in the market, further solidifying Saudi Arabia’s position as a leading regional and global financial hub.