Saudi Gazette report
RIYADH — The Capital Market Authority (CMA) has permitted a set of regulatory amendments designed to simplify the method of opening and managing funding accounts for a broader vary of traders, together with particular person international traders in Gulf Cooperation Council (GCC) international locations.
The modifications, efficient instantly upon publication, intention to align the regulatory framework with ongoing technological developments and the Kingdom’s broader funding and financial objectives.
The amendments embody updates to the “Funding Accounts Directions,” “Guidelines for Overseas Funding in Securities,” and “Capital Market Establishments Rules.”
This step is anticipated to boost the general attractiveness of the Saudi capital market by streamlining procedures, strengthening investor protections, and rising market confidence each domestically and internationally.
One of the notable modifications is the growth of funding alternatives for particular person international traders residing in GCC international locations.
Beneath the brand new guidelines, these traders can now instantly put money into shares listed on the Principal Market—a possibility beforehand restricted to swap agreements or restricted to the debt, parallel (Nomu), fund, and derivatives markets.
This shift introduces a brand new investor class into the Principal Market, providing direct entry and bolstering market liquidity and international participation.
The CMA additionally permitted measures permitting particular person international traders who beforehand resided in Saudi Arabia or GCC international locations to proceed working their funding accounts and investing within the Principal Market after leaving the area, so long as the account was initially opened whereas residing within the Kingdom.
This transfer is anticipated to keep up investor engagement and capital move continuity past residency intervals.
Moreover, the reforms intention to ease account procedures for all classes of capital market establishment shoppers, thereby increasing entry and enhancing operational effectivity throughout the board.
These developments observe a 30-day public session interval launched on November 20, 2024, by way of the Unified Digital Platform for Consulting the Public and Authorities Entities, affiliated with the Nationwide Competitiveness Heart, and the CMA’s official web site.