CMA enables GCC residents to directly invest in TASI

Logo of Capital Market Authority (CMA)

The Capital Market Authority's (CMA) board approved a set of amendments aimed at facilitating the procedures for opening investment accounts for various categories of investors, as part of the draft to amend the "Investment Accounts Instructions, the Rules for Foreign Investment in Securities, and the Capital Market Institutions Regulations", to be effective as of the date of its publication.

In a statement, the regulator said that the approval of this regulatory framework aims to align with the regulatory and technological developments in Saudi Arabia and facilitate investment in the Saudi capital market by improving the procedures for opening investment accounts, including new categories of investors, and regulating the operations related to these accounts.

This will enhance the attractiveness of the Saudi capital market for both local and international investors, increase the level of investor protection, and strengthen the confidence of market participants, it added.

The main approved elements include developing the requirements for opening an investment account for individual foreign investors residing in one of the GCC countries and expanding the types of securities they can directly invest in, including shares listed on the Main Market.

Previously, their participation is limited to the debt market, the Nomu-Parallel Market, investment funds, and the derivatives market, while their ability to trade in the Main Market is limited to swap agreements as ultimate beneficiaries through capital market institutions or as clients of these institutions, where investment decisions are made on their behalf.

This approval introduces a new category of investors to the shares listed on the Main Market, offering them a direct channel to invest in the Saudi capital market. This change is expected to attract more foreign investments, enhance market liquidity, and contribute to supporting the local economy.

The approved amendments also allow individual foreign investors who previously resided in Saudi Arabia or one of the GCC countries to continue operating their investment accounts and invest in shares listed in the main market even after their residency has ended and they return to their home country, provided they have previously opened an investment account in Kingdom.

In addition, the amendments aim to facilitate the procedures for opening and operating investment accounts for various categories of capital market institution clients.

The approval of the Amendments came following the CMA's publication of the draft on November 20, 2024, regarding the “Facilitating the Procedures for Opening and Operating Investment Accounts for Various Categories of Investors" on the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform) affiliated to the National Competitiveness Center and the CMA's website for public consultation for a period of (30) calendar days.