Saudi CMA says new QFI rules to take effect Sept. 4

10/08/2016 Argaam

Saudi Arabia’s market regulator, the Capital Market Authority (CMA), said on Wednesday that approved changes to rules applying to qualified foreign financial institutions (QFIs) investing in Tadawul-listed firms will come into effect from September 4.

 

Under the new rules, the minimum value of assets under management by QFIs has been lowered to SAR 3.75 billion.

 

In addition, government funds and university endowments and other entities approved by the CMA will be able to participate in the market.

 

With regards to investment limits, the market regulator explained that an individual QFI may not own over 10 percent of any Saudi-listed firm. 

 

Foreign investors, whether or not resident, will collectively be allowed to own a maximum of 49 percent in any listed company.

 

Approved applicants can register as QFIs after filling out the form provided by the market regulator.

 

QFI clients will be granted a grace period until November 1 to register.

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