- SAU CMA issued its resolution to publish amended draft rules for foreign investment in securities, for public consultations for a period of 30 days.
- The main elements of the project are the development of qualification conditions and facilitating the requirements that must be met by the qualified foreign investor.
- This includes canceling the requirements for submitting the qualification application.
- Instead requiring opening an investment account for the qualified foreign investor.
- Also exempting some categories from requirement assets volume under management.
- New channel is added to allow foreign natural and legal persons to invest in securities listed in main market through discretionary portfolios managed financial institutions.
- Developing conditions on investment of non-resident foreign investors in listed securities through Swap Agreements, including removing requirement on duration.
- Removing the requirement to notify the CMA prior to entering into a Swap Agreement.
- It is expected that amendments will stimulate investment, raise the attractiveness and efficiency of the financial market, enhance competitiveness regionally/internationally.
- In addition, amendments support the local economy by attracting new foreign capital.
- Feedback on the draft is expected by 9 January 2023.