Riyadh: The Capital Market Authority (CMA) called upon relevant and interested persons participating in the capital market to share their feedback on facilitating the procedures for opening investment accounts for various categories of investors.

This initiative is part of the project "Amendments of the Investment Accounts Instructions and the Rules for Foreign Investment in Securities and the Capital Market Institutions Regulations." The consultation period will last for 30 calendar days, ending on 19/06/1446H, corresponding to December 20, 2024.

The proposed draft aims to align with the regulatory and technological developments in the Kingdom of Saudi Arabia and facilitate investment in the Saudi capital market.

It seeks to improve procedures for opening investment accounts, including accommodating new categories of investors and regulating operations related to these accounts. This initiative aims to enhance the attractiveness of the Saudi capital market for local and international investors, bolster investor protection, and strengthen market confidence.

Key elements of the proposed draft include revising the requirements for opening investment accounts for individual foreign investors residing in one of the GCC countries. It also expands the range of securities they can directly invest in, such as shares listed on the main market. Currently, their participation is limited to the debt market, the parallel market "Nomu," investment funds, and the derivatives market. Their ability to trade in the main market is currently restricted to swap agreements as ultimate beneficiaries through capital market institutions or as clients of these institutions, where investment decisions are made on their behalf.

The proposal introduces a new category of investors to the shares listed on the main market, providing them with a direct channel to invest in the Saudi capital market. This change is expected to attract more foreign investments, enhance market liquidity, and support the local economy.

The proposed amendments also allow individual foreign investors who previously resided in Saudi Arabia or a GCC country to continue operating their investment accounts and investing in shares listed on the main market even after their residency ends, provided they had previously opened an investment account in Saudi Arabia.

On a local level, the amendments aim to simplify the requirements for opening investment accounts for endowments, as part of facilitating procedures for capital market institution clients.

The CMA emphasized that comments from relevant and interested persons will be taken into full consideration when finalizing the draft. Opinions and comments can be submitted via:

The Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the National Competitiveness Center: istitlaa.ncc.gov.sa.

The prescribed form through email: (Laws.Regulations@cma.org.sa).

The Draft on Facilitating the Procedures for Opening and Operating Investment Accounts for Various Categories of Investors Prescribed form for providing comments.