Saudi Market Poised for Historic Shift as Tadawul Pursues Opening to Foreign Investors
TadawulIn a bold step aimed at fostering liquidity and attracting global capital, Saudi Arabias Capital Market Authority (CMA) has opened a public consultation on landmark reforms that would open Tadawul to foreign investors, according to Gulf News.
The CMA has published the draft amendments on the Public Consultation Platform Istitlaa, to collect feedback from the public and government entities on proposed laws and regulations.
Crucially, the draft plan proposes eliminating foreign investor restrictions, ending swap agreements, and granting direct access to Saudi equities.
Currently, overseas investors are required to register as foreign institutional investors.
Under the new plan, however, this requirement would be abolished, opening the door to unrestricted direct participation in the Saudi market.
Moreover, foreign investors would have full access to direct ownership of Saudi-listed stocks after removing the use of swap agreements.
A CMA board member told...
