Allowing foreigners to invest in debt instruments in Saudi Arabia

The Saudi Capital Market Authority decided to allow resident and non-resident foreigners to directly invest in listed and unlisted debt instruments.

According to Arabiya Net, the Board said in a statement published on the Authority’s website that this decision comes from the objectives of the Commission’s strategic plan to develop the financial market (Financial Leadership Program). And in line with the (Financial Sector Development) program, one of the main programs to achieve the Kingdom's vision 2030.

It also comes as a continuation of the Authority’s endeavors to develop the debt instruments market by aligning its regulatory requirements with international best practices, with a commitment to the approach of opening up the Saudi financial market to the world and enhancing the investment environment Attracting foreign investors, in a way that contributes to raising the efficiency of the market and increasing its competitiveness regionally and internationally.

This decision will also contribute to deepening the financial market and strengthening its role in capital formation and diversification of investment products for foreign investor segments.

and the decision of the Capital Market Authority’s board included the following:

a) All foreign natural and legal persons are permitted to directly invest in debt instruments.

b) A non-resident foreign person may not invest in the market both as a direct investor in listed debt instruments and as a qualified foreign investor or final beneficiary in a swap agreement at the same time.

c) A foreign person who invests directly in debt instruments may not convert them into shares listed on the main market unless that person is one of the categories of investors who are allowed to invest Directly in the shares listed on the main market, or he becomes a final beneficiary in a swap agreement in accordance with the provisions of the Authority’s instructions related to the swap agreements.

It is noteworthy that the Capital Market Authority has prepared a guide that aims to clarify the investment channels available to non-resident foreign investors and their investment methods in the listed securities, in addition to the procedures for opening an account. Investment.

(Amazon fun knowledge)