Nomu Parallel Market opens to foreign investors tomorrow

Saudi Stock Exchange (Tadawul) will allow non-resident foreign investors to invest in the Nomu Parallel Market under the Qualified Investors category from Jan. 1, bourse statement said on Sunday.

Saudi Capital Markets Authority (CMA) introduced a new mechanism allowing foreign investors who are not residing in Saudi Arabia to buy shares into the parallel stock market, with aim to attract fresh foreign funds.

Under the new rules, a non-resident foreign investor can own up to 10 percent of any stock listed on the market or a convertible debt instrument related to an issuer.

Foreign investors (resident and non-resident) can own up to 49 percent of any listed stock or convertible debt instrument on the market.

Foreign investments in Nomu are subject to other general foreign ownership limitations, and the limitations outlined in the articles of association of listed companies, the guidelines said.

In mid-June 2015, Tadawul opened its doors to qualified foreign institutional investors and easing qualification requirements in late 2016.