Relaxes Ownership Limits for Foreign Investors

On 26 June 2019, the “Instructions for Foreign Strategic Investors’ Ownership in Listed Companies” (the FSI Instructions) became effective. The FSI Instructions removed the existing limit on foreign ownership of a Saudi-listed company to foreign strategic investors. Under the new regulations, foreign ownership of stocks will no longer be limited to qualified foreign investors (QFIs) (i.e. financial firms with at least US$500 million in assets under management). Also, the previous minimum or maximum ownership limits for strategic investors have been abolished. Holding periods of 24 months continue to apply.

• Type:

  • Entry and establishment (Ownership and control)

• Industry:

  • Not industry specific

• Sources:

  • Capital Market Authority, Instructions for the Foreign Strategic Investors Ownership in Listed Companies, https://cma.org.sa/en/RulesRegulations/Regulations/Documents/Instructions-FSI-Ownership-Listed-Companies-en.pdf, 26 Jun 2019
  • Capital Market Authority, The CMA Approves the Instructions for the Foreign Strategic Investors' Ownership in Listed Companies, https://cma.org.sa/en/MediaCenter/PR/Pages/Foreign-Strategic-Investor.aspx, 26 Jun 2019
  • Lexology, Saudi Capital Market Authority Announces New Instructions for Foreign Strategic Investors’ Ownership in Listed Companies, https://www.lexology.com/library/detail.aspx?g=412c3b73-2b5d-499b-9f2b-aa4f0446ed35, 16 Aug 2019