Riyadh: The Capital Market Authority (CMA) has invited relevant stakeholders and participants in the capital market to provide their input on a new initiative aimed at simplifying the process of opening investment accounts for various investor categories. This initiative is part of the broader project titled “Amendments of the Investment Accounts Instructions and the Rules for Foreign Investment in Securities and the Capital Market Institutions Regulations.” The consultation period will remain open for 30 calendar days, concluding on December 20, 2024.

According to Saudi Press Agency, the proposed draft aims to align with recent regulatory and technological advancements in the Kingdom of Saudi Arabia. It focuses on enhancing the procedures for opening investment accounts, accommodating new investor categories, and regulating account-related operations. The initiative targets increasing the appeal of the Saudi capital market to both local and international investors, strengthening investor protection, and boo
sting market confidence.

A crucial component of the draft includes revising the requirements for individual foreign investors residing in GCC countries to open investment accounts. It proposes expanding their access to securities, such as shares listed on the main market, beyond the current limitations to debt markets, the parallel market “Nomu,” investment funds, and the derivatives market. Presently, their involvement in the main market is confined to swap agreements either as ultimate beneficiaries through capital market institutions or as clients of these institutions, with investment decisions made on their behalf.

The proposal introduces a new investor category for shares listed on the main market, offering direct investment channels into the Saudi capital market. This adjustment is anticipated to draw increased foreign investments, enhance market liquidity, and support the local economy.

Additionally, the amendments propose allowing individual foreign investors who have previously resided in Saudi A
rabia or a GCC country to continue operating their investment accounts and investing in main market shares even after their residency concludes, provided they have an existing investment account in Saudi Arabia.

On the domestic front, the amendments aim to streamline the process for opening investment accounts for endowments, facilitating procedures for clients of capital market institutions.

The CMA has stressed that feedback from stakeholders will be thoroughly considered in finalizing the draft. Opinions and comments can be submitted via the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), associated with the National Competitiveness Center, or through a prescribed form via email at [email protected]. The draft and the prescribed form for comments are accessible through the provided links.