IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jan 2018 | Removal date: open ended
Still in force

Controls on commercial transactions and investment instruments

According to consistent press reports, the Capital Market Authority of Saudi Arabia will for the first time provide direct access to non-resident foreign investors in its local parallel equity market NOMU.

The Parallel Market is a local Saudi equity market that serves as an alternative platform primarily for small and medium-sized enterprises to go public.

 The prior highlighted liberalisation will be effective as of 1 January 2018.

Nevertheless, in spite of the denoted, the following ownership limitations will still to apply for non-resident foreign investors:

  • They may not own 10% or more of the shares listed of a local issuing entity. Furthermore, they may not own more than 10% of the convertible debt instrument of local issuers.
  • The maximum proportion of shares listed or convertible debt instruments that may be owned by all foreign investors in aggregate in a given institution is 49%. 
  • They are also be subjected to additional legislative limitations listed either by local entities or governing public authorities (i.e. limitations not specifically highlighted in official sources).

It is relevant denoting that according to official sources, this measure is in line with Saudi Vision 2030 -- which is a plan to reduce Saudi Arabia's dependence on oil, diversify its economy, and develop local public service sectors.

AFFECTED COUNTRIES

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