Saudi Arabia eased rules on foreign investors with goal of attracting external capital to stock market and diversifying economy

Briefing

Saudi Arabia eased rules on foreign investors with goal of attracting external capital to stock market and diversifying economy

January 12, 2018

Briefing
  • Lenient Foreign Ownership Rules – Saudi Arabia halved minimum requirement of qualified foreign investors (QFI) buying listed companies to $500 million (SAR 1.875 billion) to attract external capital and diversify stock market
  • Higher Foreign Ownership Limit – Now at 10% ownership of stock per company for single qualified investor, and 49% for resident and non-resident foreign holdings
  • Automatic Qualification – Capital Market Authority (CMA) also eliminated requirements for review and approval, automatically qualifying units and managed funds of QFI applicants
  • Market Diversification – Saudi Arabia ramping up efforts to open up stock market and wean economy off oil
  • State Assets Divestment – Plans to create world’s largest sovereign fund and divest from Saudi Arabian Oil Co., largest oil producer, and other stakes in stock exchange, football clubs and flour mills

Accelerator
Globalization and International Trade

Market Disruption
Emerging Capital Markets, Innovation, Competitiveness and Trade

Sector
Energy, Financial Services, Government (excluding military)

Organization
Capital Market Authority (CMA) of Saudi Arabia

Source

Original Publication Date
January 9, 2018

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