Investment regulation – Saudi Arabia
Market entry requirements
Only legal or natural persons, that are non-Saudi or non-residents of Saudi Arabia and are a customer or an underlying client of a customer of CBL can access the Saudi link and hold Saudi Arabian securities via CBL.
Customers who wish to access the Saudi Arabian market via CBL should familiarise themselves with the local market requirements. In particular, customers should ensure that neither they, nor their underlying clients, are mentioned as nationally designated names as per the attached link in Saudi Arabia including sanctions requirements which will be applicable to customers who engage on the local market subject to such requirements.
Holding restrictions
Qualified Foreign Investors (QFI) specific ownership limits and restrictions:
- A QFI cannot hold more than 10% of a Saudi joint stock company.
- A QFI is not permitted to hold direct equity investments at the same time as they hold positions under the CMA SWAPs programme (permitted for a transitional period only).
- QFIs can invest in all companies listed on the Saudi stock market except for companies that are specifically restricted for investment.
- QFIs are permitted to participate in Initial Public Offerings (IPOs) unless the IPO prospectus specifically restricts their participation.
Gulf Cooperation Council (GCC) specific ownership limits and restrictions:
- No GCC entity can hold more than 49% in a Saudi joint stock company.
General ownership limits and restrictions:
- No single foreign investor may own more than 10% of the issued units in local-share mutual funds managed by a local fund manager.
- Foreign investors (residents or non-resident) including GCC investors, cannot own more than 49% of the issued shares for each listed company. This includes interests under SWAPs and P-Notes.
Instructions for international central securities depositories:
- Only legal or natural persons, that are non-Saudi or non-residents of Saudi Arabia and are a customer or an underlying client of a customer of CBL can access the Saudi link and hold Saudi Arabian securities via CBL.
- No ownership limits for Saudi Government bonds, corporate bonds (non-convertible) and ETFs.
Disclosure requirements
For details of the local domestic disclosure requirements, please refer to Disclosure Requirements - Saudi Arabia.