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Saudi CMA Eases Investment Rules To Attract More Foreign Capital

KUALA LUMPUR, July 15 (Bernama) -- The Saudi Capital Market Authority (CMA) has approved a set of amendments to simplify investment account procedures for certain investor categories in a move aimed at boosting its capital market appeal.

The regulatory update enables individual foreign investors residing in the Gulf Cooperation Council (GCC) countries to directly invest in the Saudi Main Market (TASI) for the first time.

Previously, access for this group was limited to debt instruments, the Parallel Market (Nomu), investment funds, and derivatives — or was only possible through intermediated arrangements like swap agreements.

The CMA also introduced a new provision allowing former residents of Saudi Arabia or GCC countries to retain and operate their investment accounts even after leaving the region. This move is seen as a step toward establishing Saudi Arabia as a durable, investor-friendly environment.

These changes reflect the Kingdom’s efforts to align with global regulatory trends and digital innovation while continuing to enhance investor protection and confidence, according to a statement.

The broader strategy appears to be paying off. By the end of the first quarter of this year, foreign ownership in the Saudi market exceeded 500 billion Saudi riyals, while net foreign investment surged to 218 billion Saudi riyals by the end of 2024, marking a significant rise from 140 billion Saudi riyals in 2021. (100 Saudi riyals = RM113.43)

Sustainable investments by Qualified Foreign Investors (QFIs) also grew notably, reaching 7.8 billion Saudi riyals last year — up 29 per cent year over year.

This reform builds on a series of market-opening measures, including recent allowances for foreign investment in real estate firms operating in Makkah and Madinah, further positioning Saudi Arabia as a magnet for international capital.

The CMA’s latest facilitation underscores its commitment to making the Saudi capital market more accessible, competitive, and resilient on a global scale.

-- BERNAMA