CMA approves international central securities depositories instructions

The Capital Market Authority (CMA) approved today the international central securities depositories instructions proposed by the Securities Depository Center Co. (Edaa), where the instructions will enable foreign investors to invest in the Kingdom's debt instruments market through international depository centers.

This step is consistent with The Kingdom's Vision 2030, which includes Financial Sector Development Program that seeks to develop the Saudi capital market, and with the authority's strategic plan, which includes the financing facilitation hub, where one of its objectives is to develop the Sukuk/Bonds Market, the market regulator said in a statement obtained by Argaam.

The authority pointed out that linking international depository centers with Edaa in the Kingdom comes within the framework of the strategic authority's goal of stimulating investment in the capital market, expanding the base of investors participating in the sukuk market and debt instruments, enabling a larger segment of foreign investors to participate, as well as contributing to raising the attractiveness of issuing Sukuk and debt instruments in local currency, and also achieving diversity in the investor base through active participation by foreign investors.

The CMA has made many efforts and performed several procedures in partnership with several entities including Tadawul Group and the National Debt Management Center to raise the attractiveness of the Saudi capital market and develop the Sukuk/Bonds Market, the statement added.

Earlier today, Edaa announced the issuance of the Capital Market Authority’s board resolution on the international central securities depositories instructions, according to data compiled by Argaam.