CMA Enhances Foreign Investor Access With New Investment Account Regulations In Saudi Arabia

The Capital Market Authority (CMA) in Saudi Arabia has introduced amendments to the rules for opening and managing investment accounts. These changes aim to broaden access for foreign investors and align with the Kingdom's regulatory and technological advancements.

Previously, foreign investors residing in GCC countries had limited investment options. They could only invest in debt instruments, the Parallel Market (Nomu), investment funds, and derivatives. Access to the main market required a swap agreement or being a client of a Capital Market Institution.

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Investment Opportunities for Foreign Investors

The new regulations now allow individual foreign investors from GCC countries to directly invest in shares listed on the Saudi Main Market (TASI). This expansion is part of CMA's efforts to enhance the investment environment and widen the investor base in Saudi Arabia's capital market.

Additionally, foreign investors who previously lived in Saudi Arabia or GCC countries can continue using their investment accounts after returning home. This is possible if they had opened an account while residing in the Kingdom, allowing them to invest in listed shares on the main market.

Impact on Foreign Ownership and Investments

Foreign ownership in Saudi Arabia's capital market reached SAR 423 billion by 2024, marking a 5.5% increase from 2023 and a 103% rise since 2020. The Kingdom ranked seventh globally for IPO proceeds at $4.3 billion and ninth for listings with 44 in 2024.

Net foreign investments grew by 10% year-on-year, reaching SAR 218 billion. Assets under management also exceeded SAR 1 trillion, reflecting significant growth in the sector.

Abdulaziz Almojel, Deputy for Strategy, Research & International Relations at CMA, stated: "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."

The amendments reflect CMA's commitment to fostering an inclusive investment landscape that supports national economic growth while attracting diverse global investors.