Saudi Arabia plans investment funds regulations

06 May 2015

Capital Market Authority aiming to boost institutional investment in trading markets

  • CMA looking to encourage more investment in Saudi trading markets
  • On 4 May, CMA issued new rules for foreign investment in Tadawul

Saudi Arabia’s Capital Market Authority (CMA) says it is planning to introduce additional investment fund regulations by the end of 2015 to encourage more investment in the country’s trading markets.

“We are looking to see an improvement on the fund side,” said Mohammed al-Jadaan, chairman of the CMA, speaking at the Euromoney Saudi Arabia conference held in Riyadh on 5-6 May. “Before the end of the year, we want to see investment funds regulations to encourage more funds to come to the market.”

“This should gradually increase share of institutional investment – hopefully this year and more next year,” he added.

On 4 May, the CMA issued new rules for foreign investment in the Saudi Stock Exchange (Tadawul). Riyadh is preparing to open its $590bn stock market to foreign investors on 15 June.

Foreign entities will be able to hold up to 49 per cent of a single stock.

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