Saudi Arabia – CMA Foreign Investors, Debt

Saudi Arabia – CMA Foreign Investors, Debt

On 2 September 2020, SAU CMA allowed foreigners to directly invest in debt.

  • SAU CMA board issued a decision dated 12 August 2020, allowing resident and non-resident foreigners to invest directly in listed and non-listed debt instruments.
  • As part of efforts to align its regulatory requirements with international best practices.

Decision Highlights

  • Allowed all foreign legal and natural persons, to invest directly in debt instruments.
  • Non-resident foreigners cannot simultaneously invest as direct investors in listed debt instruments and as qualified foreign investor/ultimate beneficiary in swap agreements.
  • Foreigners investing directly in debt instruments cannot convert them to shares listed in main market, unless in category of investors who can invest directly in main market.
  • Or unless the foreigner becomes an ultimate beneficiary in a swap agreement.

Foreign Investor Guide

  • CMA issued a guide on the investment channels available for non-resident foreigners.
  • As well as methods of investing in listed securities, procedures for opening accounts.