Saudi Capital Market Authority Publishes Draft Rules for Qualified Foreign Financial Institutions Investment in Listed Shares
Type
E-journal
Date
3 Sep 2014
Jurisdiction
Saudi Arabia
Taxonomy
General Banking & Finance Law, Regulation & Offences, Companies & Corporate Bodies, Public Companies
Copyright
LexisNexis
Relevant company
Latham & Watkins LLP
Associated digest links
Saudi CMA Publishes Draft Rules to Open Tadawul to Qualified Foreign Investors, LNB News 29/08/2014 105, Saudi Arabia: Foreign Ownership of Stocks to be Limited, LNB News 20/08/2014 98, Saudi Opens Market to Foreign Financial Institutions, LNB News 28/07/2014 39, Saudi Arabia: Bourse to be Opened to Foreigners, LNB News 22/07/2014 99
Analysis
Following last month's announcement by the Saudi Arabian Capital Market Authority (the CMA) of its proposal to permit participation by qualified financial institutions directly on the Kingdom's stock exchange (the Tadawul), the CMA has now published its Draft Rules for public consultation.
The Draft Rules include detailed provisions relating to qualified foreign investor (QFI) eligibility, assessment and approval process of investment applications by QFIs, investment limits on shares and the procedure for applications. The Draft Rules represent a significant step towards the liberalisation of the Tadawul, and the opening up of the Kingdom's capital markets to foreign investment.
Written by Sami Al-Louzi, Salman Al-Sudairi, Andrew Tarbuck, Harj Rai, Nomaan Raja and Omar Elsayed on 3 September 2014.