PR85380

RIYADH, Saudi Arabia, Sept. 2, 2020 /PRNewswire=KYODO JBN/ --

The CMA Board issued its resolution on 22/12/1441 H., corresponding to

12/08/2020G, which included allowing residents and non-residents foreigners to

invest directly in listed and non-listed debt instruments. This comes as part

of CMA's strategic goals to develop the capital market "Financial Leadership

Program" and in line with "Financial Sector Development Program" one of the

main programs to achieve the objectives of Saudi Vision 2030.

This resolution comes as a continuation of the CMA's endeavor to develop the

debt instruments market by aligning its regulatory requirements with

international best practices. In addition to that, the continuity of the

approach of opening up the Saudi financial market to the world and enhancing

the investment environment attractive for foreign investors, thus contributing

to raising the efficiency of the market and increasing its competitiveness

regionally and internationally. This resolution will also contribute to

deepening the financial market, enhancing its role in capital formation, and

diversifying investment products for foreign investor segments.

The CMA Board resolution included the following:

a) All foreign legal and natural persons may invest directly in debt instruments.

b) A non-resident foreign person may not invest in the market as a direct

investor in listed debt instruments and as a qualified foreign investor or an

ultimate beneficiary in swap agreements at the same time.

c) A foreign person who invests directly in debt instruments may not convert

such instruments into shares listed in the Main Market, unless such person is

among the categories of investors who are allowed to invest directly in the

shares listed in the Main Market, or becomes an ultimate beneficiary in a swap

agreement in accordance with the provisions of the Authority's instructions on

swap agreements.

It is noteworthy that the Capital Market Authority worked on preparing a guide

that aims to clarify the investment channels available for non-resident foreign

investors, the methods of investing in listed securities, and the procedures of

investment account opening. The guide can be viewed through the following link:

(Link - http://cmainternet/en/Market/QFI/Documents/FI-EN.pdf )

Contact:

Capital Market Authority

Communication & Investor Protection Division  

Media@cma.org.sa

About CMA:

The Capital Market Authority (CMA) is the supervisory and administrative

authority responsible for regulating and developing the financial market by

issuing the laws, regulations and instructions necessary to implement the rules

of the Capital Market Law, in order to provide the appropriate climate for

achieving confidence, fairness and efficiency for issuance of securities and

full disclosure of joint stock companies and protect investors from the illegal

acts in the stock market.

For more information about CMA, please visit the official website:

www.cma.org.sa

Source:  Saudi Arabia Capital Market Authority (CMA)