Saudi Arabia to Open Stock Market to Foreign Financial Institutions – Timeline Announced
On July 22, 2014, the Saudi Arabian Capital Market Authority (CMA) announced that qualified foreign financial institutions would be permitted to buy and sell stocks listed on the Saudi stock market in accordance with rules to be adopted by the CMA. The CMA subsequently released its Draft Rules for Qualified Foreign Financial Institutions' Investment in Listed Shares (the Draft Rules) and solicited opinions and suggestions from investors and other interested parties on the Draft Rules.
Click here to continue reading a brief summary of the Draft Rules.
On April 16, 2015, the CMA announced that it has now adopted the following timeline to permit foreign financial institutions to buy and sell stocks listed on the Saudi stock market:
- Final Rules will be approved and published on 15/7/1436H (corresponding to May 4, 2015G);
- The Final Rules will be effective starting from 14/8/1436H (corresponding to June 1, 2015G); and
- Qualified foreign financial institutions shall be allowed to invest in listed shares starting from 28/8/1436H (corresponding to June 15, 2015G).
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