Saudi Arabia to open stock market to foreigners in June

Launch-ribbon-cuttingQualified foreign investors will be able to buy shares on the Saudi Arabian stock exchange, the Tadawul, for the first time on June 15.

The timeline for the opening of the Tadawul, one of the last major exchanges still closed to direct investment from overseas, was confirmed by the Saudi regulator, the Capital Market Authority (CMA).

The CMA says it will publish final rules relating to the opening-up process on May 4 and that these will be effective from the start of June.

In a statement, the CMA also said it had reviewed comments on draft rules published in August 2014 and confirmed the Tadawul's readiness.

According to the draft rules, qualified investors must have a five-year investment track record and at least $5 billion under management (though the CMA may lower this limit to $3 billion at its discretion).

Potential qualified investors must submit applications to a CMA-licensed Saudi financial institution, which will decide on their case, subject to final approval by the CMA.

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