CMA proposes to let Gulf and former Saudi Expats invest in TASI
Foreign nationals (Expatriates) are now being allowed to invest in shares listed on the Saudi primary stock market, or All Tadawul Share Index (TASI), according to a draft law published by the Capital Market Authority (CMA). Trending : SFDA to impose travel ban on Expats in food poisoning cases
Expatriates residing in one of the Gulf Cooperation Council (GCC) countries, or who have previously resided in the Kingdom of Saudi Arabia (KSA) or one of the GCC countries, will be able to invest in shares listed on the main market, according to the draft amendment to the Investment Accounts Instructions, the Rules Governing Foreign Investment, and the Financial Market Institutions Regulations.
An individual foreign investor whose residency has ended in Saudi Arabia or one of the GCC countries can keep investing in shares listed on the main market and operating their investment accounts, according to the proposed amendments. All they need to do is open an account in Saudi Arabia before they return home.
As part of its preparation for approval, the authority put the proposal on the Istithlaa platform. It also seeks to streamline the processes of opening and managing investment accounts for various types of clients of financial market institutions, all while considering ways to improve protection for customers. Most Viewed : Saudi Rail Network to expand over 8000 km
For 30 days ending on December 20, 2024, the CMA invited all interested parties and relevant stakeholders in the capital market to provide feedback on the proposed "Amendments of the Investment Accounts Instructions and the Rules for Foreign Investment in Securities and the Capital Market Institutions Regulations" regarding the simplification of the processes for opening investment accounts for different types of investors.
Among the most important parts of the proposal are the provisions that would make it easier for foreign nationals living in a GCC country to register an investment account and the provisions that would increase the variety of assets in which these investors might directly invest, including main market shares. The debt market, the parallel market (Nomu), investment funds, and the derivatives market are currently their exclusive domains.
Identity documents and a current passport are required in order to create an investing account for expatriates living in the GCC nations. A valid passport is required of all foreign nationals who do not currently reside in the Kingdom or any of the GCC countries.
It was stated in the proposed legislation that, with the exception of endowment and non-profit organizations, individual institutions were no longer allowed to open investment accounts. Follow Saudi Expatriates on Google News
CMA proposes to let Gulf and former Saudi Expats invest in TASI