Move comes as nation prepares to open its bourse to direct foreign investment
- Investors will be able to own up to 49 per cent of a single stock
- Investors must have at least $5bn under management
- Saudi Arabia is due to open its $590bn stock market on 15 June
Saudi Arabia has issued new rules for the countrys stock market as it prepares to open its $590bn stock market to foreign investors in June this year.
The rules will take effect on 1 June, ahead of the markets planned opening, which is due to take place on 15 June.
Under the rules only qualified foreign investors will be permitted to invest in the market, according to a statement that was published on the website of the Riyadh-based Capital Market Authority on 4 May.
The qualified foreign investors will include banks, brokerages, fund managers and insurance companies with at least $5 billion in assets under management, according to Saudi Arabias Capital Market Authority.
Foreign entities will also be limited to owning up to 49 per cent of a single stock.
The new rules were initially outlined by Saudi Arabia in August 2014.
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