Saudi Gazette report

RIYADH — The Capital Market Authority (CMA) has approved a set of regulatory amendments designed to simplify the process of opening and managing investment accounts for a broader range of investors, including individual foreign investors in Gulf Cooperation Council (GCC) countries.

The changes, effective immediately upon publication, aim to align the regulatory framework with ongoing technological advancements and the Kingdom’s broader investment and economic goals.

The amendments include updates to the “Investment Accounts Instructions,” “Rules for Foreign Investment in Securities,” and “Capital Market Institutions Regulations.”

This step is expected to enhance the overall attractiveness of the Saudi capital market by streamlining procedures, strengthening investor protections, and increasing market confidence both locally and internationally.

One of the most notable changes is the expansion of investment opportunities for individual foreign investors residing in GCC countries.

Under the new rules, these investors can now directly invest in shares listed on the Main Market—an opportunity previously restricted to swap agreements or limited to the debt, parallel (Nomu), fund, and derivatives markets.

This shift introduces a new investor category into the Main Market, offering direct access and bolstering market liquidity and foreign participation.

The CMA also approved measures allowing individual foreign investors who previously resided in Saudi Arabia or GCC countries to continue operating their investment accounts and investing in the Main Market after leaving the region, as long as the account was initially opened while residing in the Kingdom.

This move is expected to maintain investor engagement and capital flow continuity beyond residency periods.

Additionally, the reforms aim to ease account procedures for all categories of capital market institution clients, thereby expanding access and enhancing operational efficiency across the board.

These developments follow a 30-day public consultation period launched on November 20, 2024, via the Unified Electronic Platform for Consulting the Public and Government Entities, affiliated with the National Competitiveness Center, and the CMA’s official website.