Allows foreign investors to directly invest in Parallel Market

On 26 October 2017, the Capital Market Authority (CMA) Board issued its resolution allowing non-resident foreign investors to invest directly in the Parallel Market, starting from 1 January 2018. Foreign investors in the Parallel Market will no longer have to meet requirements to qualify as foreign institutional investors, but will have to continue to obey limits on foreign ownership of stocks. The Parallel Market is an equity market with lighter listing requirements that serves as an alternative platform for companies - especially for small and medium-sized enterprises - to go public.

• Type:

  • Entry and establishment (Ownership and control)

• Industry:

  • Not industry specific

• Sources:

  • Capital Market Authority, An announcement of the issuance of the CMA Board Resolution Allowing Non-Resident Foreign Investors to Invest in the Parallel Market, https://cma.org.sa/en/Market/News/pages/CMA_N_2312.aspx, 26 Oct 2017
  • Asharq Al-Awsat Newspaper, Saudi Arabia Permits Foreigners to Directly Invest in Parallel Market, https://aawsat.com/english/home/article/1065431/saudi-arabia-permits-foreigners-directly-invest-parallel-market, 27 Oct 2017
  • CNBC, Saudi Arabia is opening up its IPO market to foreign investors, https://www.cnbc.com/2017/10/26/saudi-arabia-is-opening-up-its-stock-market-to-foreign-investors.html, 26 Oct 2017