CMA Approves Amendments to Investment Accounts Instructions to Strengthen Foreign Investor Access and Enhance Market Efficiency

The Capital Market Authority (CMA) of Saudi Arabia has approved a set of amendments to the regulatory framework governing the procedures for opening and operating investment accounts. These changes aim to facilitate access for a broader base of foreign investors and align with the Kingdom's regulatory and technological developments.

The amendments are part of CMA’s ongoing efforts to enhance the investment environment and expand the investor base in the Saudi capital market.

The requirements for opening an investment account for individual foreign investors residing in one of the GCC countries have been developed. In addition, the scope of securities that they can directly invest in now includes the shares of listed companies on the Saudi Main Market (TASI).

Before these facilitations, their access was limited to the debt instruments market, the Parallel Market (Nomu), investment funds, and the derivatives market. Furthermore, trading in the main market was previously restricted to being a final beneficiary under a swap agreement with a Capital Market Institution or as a client of a Capital Market Institution that made investment decisions on their behalf.

Additionally, the approved amendments allow individual foreign investors who previously resided in the Kingdom or GCC countries. For the first time, these investors will be able to continue operating their investment accounts and investing in listed shares on the main market even after their residency has ended and they have returned to their home country, provided they had previously opened an investment account in the Kingdom.

Abdulaziz Almojel, Deputy for Strategy, Research & International Relations, CMA, commented: “These enhancements are part of the Authority’s continued efforts to create a transparent and accessible investment environment for both local and international participants. By facilitating account procedures and broadening investor eligibility, we are strengthening the foundations of the Saudi capital market and reinforcing our role as a forward-looking regulator supporting national economic development.”

Foreign ownership in the Saudi capital market reached SAR 423 billion by the end of 2024, up 5.5% from 2023 and 103% since 2020.

Kingdom ranked 7th globally in IPO proceeds (USD 4.3 billion) and 9th in number of listings (44 in 2024). Net foreign investment reached SAR 218 billion (+10% YoY), while assets under management surpassed SAR 1 trillion.