Saudi CMA Publishes Draft Rules to Open Tadawul to Qualified Foreign Investors

Proposal brings the Kingdom’s robust stock exchange closer to major international financial institutions.

Following on from last month’s announcement by the Saudi Arabian Capital Market Authority (the CMA) that it proposes to permit non-Saudis to participate directly on the Kingdom’s stock exchange (the Tadawul) by foreigners, the CMA published for consultation its draft rules for Qualified Foreign Financial Institutions — Investments in Listed Shares on 21 August, 2014 (the Draft Rules). This Client Alert analyses the Draft Rules and assesses the significance of this development in the context of the capital markets of the Gulf Cooperation Council (GCC) countries1 as a whole.

The Draft Rules represent a significant step towards the liberalisation of the Tadawul and the opening up of the Kingdom’s capital markets to foreign investment.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  Financial Institutions, Foreign Investment, Proposed Regulation, Saudi Stock Exchange

Published In: General Business Updates, Finance & Banking Updates, International Trade Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Latham & Watkins LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »