Saudi CMA, SAGIA sign MoU to regulate foreign investment in listed firms

Saudi Arabia’s market regulator, the Capital Market Authority (CMA), and the Saudi Arabian General Investment Authority (SAGIA) have signed a memorandum of cooperation to set up a framework for foreign investors to own stakes in listed companies, according to a statement.

The move is in line with the foreign investment law aimed at regulating foreign investments in the Kingdom as well as developing the capital market.

Under the memorandum, “non-resident strategic foreign ownership means owning 10 percent or more of a company’s share capital that has voting rights attached to it” except in those sectors that prohibit foreign investment.

The CMA has recently implemented a number of changes to the capital market’s foreign investment environment, in line with the national transformation program (NTP) and the Kingdom’s 2030 vision, including in the QFI’s rules and completing a number of initiatives that will make the Saudi capital market more compatible with its international counterparts.