Saudi Arabia Expands Foreign Investor Access
The Kingdom of Saudi Arabia further loosens access to its capital markets with the launch of an offshore securities license.
Saudi Arabia’s Capital Markets Authority (CMA) has launched an offshore securities business license, according to a statement.
This will enable licensed institutions to carry out securities activities as well as manage investment funds that invest in securities within the Kingdom. These services may be provided to foreign clients outside Saudi Arabia in addition to a specified category of local clients.
License holders will now be allowed to invest in the Saudi capital market without the need to meet the qualification requirements typically imposed on qualified foreign investors (QFI). Client base access will also be broadened to include transactions with sovereign investment funds such as the Public Investment Fund.
International Holdings
Previously, investors could only access the Saudi market via the QFI program which included restrictions such as ownership caps. Prior to that, foreign accessibility was only available via swap arrangements.
International investors are increasingly interested in opportunities within the Kingdom. As of end-2024, foreign holdings reached approximately 423 billion Saudi Arabian riyals ($113 billion).
