Saudi regulator to open debt instruments to foreign investors

Saudi Arabia is stepping up its efforts to attract more foreign investors by making certain securities more accessible.

In Riyadh, the Saudi Arabia Capital Market Authority (CMA) unveiled a new rule that will allow non-resident foreigners to invest in listed and non-listed debt instruments.

According to the CMA, the move will help “make the investment environment attractive for foreign investors, thus contributing to raising the efficiency of the market and increasing its competitiveness regionally and internationally”.

There are some conditions attached to the new rules. Non-resident foreigners cannot be direct investors in listed debt instruments while also being a qualified foreign investor or an ultimate beneficiary in swap agreements.

Additionally, those listed debt instruments cannot be converted into shares listed in the main market unless they are within certain exempt categories.

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