Saudi Arabia’s Capital Market Authority (CMA) has announced draft proposals on foreign-shareholder limits as one of the world’s most restricted stock markets prepares to open its doors for the first time to investors outside the region, according to Bloomberg.
The market regulator may cap foreign ownership of a single stock to 49%. The CMA may also set a 5% limit for qualified foreign investors, or QFIs, in a single stock, and 20% cap for QFIs and approved QFI clients.
Investors from outside the GCC, looking for access to Saudi Arabia’s $745 billion economy, are not currently allowed to buy Saudi-listed shares directly, and instead access the market through equity swaps and exchange-traded funds.
Foreign investors with a minimum of SAR 18.75 billion ($5 billion) of assets under management and at least five year-experience in the business may be eligible to trade Saudi stocks (SASEIDX), the regulator said. It may reduce the minimum for those assets to SAR 11.25 billion.
Last month, the CMA said it would open up the bourse for foreigners in the first half of next year.
The market regulator may cap foreign ownership of a single stock to 49%. The CMA may also set a 5% limit for qualified foreign investors, or QFIs, in a single stock, and 20% cap for QFIs and approved QFI clients.
Investors from outside the GCC, looking for access to Saudi Arabia’s $745 billion economy, are not currently allowed to buy Saudi-listed shares directly, and instead access the market through equity swaps and exchange-traded funds.
Foreign investors with a minimum of SAR 18.75 billion ($5 billion) of assets under management and at least five year-experience in the business may be eligible to trade Saudi stocks (SASEIDX), the regulator said. It may reduce the minimum for those assets to SAR 11.25 billion.
Last month, the CMA said it would open up the bourse for foreigners in the first half of next year.
Source:
Mubasher
