Saudi Nomu parallel market to open to foreign investors

Saudi Arabia’s Capital Market Authority (CMA) has approved allowing non-resident foreign investors to participate in the Nomu Parallel Market starting from January 1, the market regulator said in a statement to Tadawul on Thursday.

CMA’s board of directors adopted amended guidelines and new mechanism for foreign investment in Nomu as part of efforts to develop the equity market and attract more foreign investments in line with the Saudi Vision 2030.

Under the new regulations, non-resident foreign investors are not allowed to own 10 percent or more of an issuer’s listed shares or convertible debt instruments.

Resident and non-resident foreign investors will own a maximum of 49 percent of a listed stock or convertible debt instruments.

Investments of foreigners in Nomu are subject to other legislative limitations on foreign ownership in joint stock companies, and the limitations set forth in the articles of association of listed companies or any instructions issued by the competent regulatory authorities.

The Saudi Stock Exchange (Tadawul) opened its doors in mid-June 2015 to qualified foreign institutional investors (QFIs) and qualification requirements were eased late last year, Argaam earlier reported.

Last September, the Kingdom announced plans to further open up its stock market to foreign investors later this year as it seeks to become an international capital markets hub.