Saudi Arabia plans to further open up its capital market to foreign investors by September 2023, with its capital market regulator, the Capital Markets Authority (CMA), proposing several changes to simplify requirements for qualified foreign investors (QFIs) and adding new channels for overseas retail investors in the country’s bourses, according to reports.
The new draft rules from the CMA says that QFIs will be required to open only an investment account in accordance with the Investment Accounts Instructions, instead of the existing mandatory requirements of applications for qualification and assessment agreements.
The draft rules also waive the requirement of stipulated sizes for assets under management for some classes of QFIs, according to Arabian Business.
The draft rules were released for public consultation on Wednesday, and will be open for a 30-day period, ending on January 9, 2023.
The CMA hopes that these amendments will have a positive impact on encouraging additional investment into the Kingdom, increasing the attractiveness and efficiency of the capital market, and enhancing its regional and international competitiveness.
