Saudi Arabia Expands Foreign Market Access With Offshore Securities Licence
KUALA LUMPUR, May 26 (Bernama) -- Over the past decade, Saudi Arabia’s Capital Market Authority (CMA) has steadily opened its financial markets to global investors, attracting foreign holdings of nearly 423 billion Saudi riyals by the end of 2024. (100 Saudi riyals = RM112.50)
A key milestone in this transformation is the introduction of the Offshore Securities Business Licence, aimed at cementing the Kingdom’s role as a regional and global financial hub, according to a statement.
The journey began in 2015 with the Qualified Foreign Investor (QFI) programme, which replaced indirect access through swap arrangements with direct market participation.
Reforms since then have relaxed ownership limits, expanded eligibility, and improved governance, helping secure Saudi Arabia’s inclusion in global indices like MSCI and FTSE Russell in 2019—catalysing a surge in foreign capital.
In January 2025, the CMA introduced a breakthrough regulation allowing foreign ownership of listed companies with real estate assets in Makkah and Madinah—up to a 49 per cent joint stake—lifting a long-standing restriction in the holy cities.
The new offshore licence, currently pending implementation, will allow institutions to conduct securities business via regional headquarters, serve foreign clients, and invest in the Saudi market without QFI restrictions. This licence also grants access to key clients such as sovereign wealth and pension funds, offering flexibility for complex investment structures.
These developments reflect Saudi Arabia’s strategic, regulation-driven approach to market reform under Vision 2030. While challenges remain in execution, the message is clear: Saudi Arabia is not just opening its markets—it is actively competing to lead.
-- BERNAMA