CMA to ease rules for foreign funds investing in Tadawul

Saudi Arabia’s Capital Market Authority (CMA) plans to ease requirements for foreign institutional investors on Tadawul, as the Kingdom aims to attract more capital into the market under ongoing economic reforms, the market regulator said in a statement.

Under the proposed amendments to rules to qualified foreign financial institutions (QFIs) investing in Tadawul, the minimum value of managed assets required of the institution to qualify as an investor has been cut to SAR 1.875 billion ($ 500 million) from SAR 3.75 billion.

Administrative procedures of the qualification process will also be eased, as enterprises will be able to qualify subsidiaries and managed funds without separately applying for qualification.

In addition, the CMA said it would recognize a wider list of regulatory jurisdictions as acceptable to Saudi Arabia.

The regulator has given the public 14 days to comment on the proposals, the statement said.

In a separate statement, the CMA said it had approved rules on class action suits in securities disputes.

The move aims to protect investors and ease the litigation process, said CMA chairman Mohammed Al-Quwaiz.