CMA Seeks Input On Opening Main Market To Non-Resident Foreign Investors

KUALA LUMPUR, Oct 2 (Bernama) -- The Capital Market Authority (CMA) has called on relevant stakeholders and interested parties in the capital market to submit feedback on a proposal to open the Main Market to all categories of non-resident foreign investors, enabling them to invest directly.

According to CMA in a statement, the public consultation period will last for 30 calendar days, ending on Oct 31.

The proposed draft aims to broaden and diversify the investor base eligible to participate in the Main Market, attract additional capital inflows, and enhance market liquidity.

If approved, the draft will eliminate the concept of the Qualified Foreign Investor (QFI) for the Main Market, thereby allowing all categories of foreign investors to participate without needing to meet specific qualification requirements.

It would also abolish swap agreements, which were previously used to provide non-resident foreign investors with only the economic benefits of listed securities, and instead allow for direct ownership of shares on the Main Market.

By the end of the second quarter of 2025, international investor ownership in the Saudi capital market exceeded 528 billion Saudi riyals, while foreign investments in the Main Market reached around 412 billion Saudi riyals during the same period. The proposed changes are expected to further boost foreign investment. (100 Saudi riyals = RM112.18)

Notably, in July 2025, the CMA introduced measures to simplify the process of opening and managing investment accounts for certain investor categories, including natural foreign investors residing in Gulf Cooperation Council (GCC) countries, as well as those who had previously resided in the Kingdom or any GCC nation. The initiative was part of broader efforts to enhance market accessibility and support the national economy.

The current draft is aligned with the CMA’s phased approach to market liberalisation, building on earlier milestones and paving the way for future reforms aimed at positioning Saudi Arabia’s capital market as a globally attractive investment destination.

The CMA emphasised that the comments of relevant and interested persons shall be taken into full consideration for the purpose of approving the final proposed amendments, which in turn shall contribute to the aim of enhancing and developing the regulatory environment.

-- BERNAMA