News Column

20% limit on Saudi stocks' foreign ownership

August 20, 2014

Overseas investors in the Saudi Arabian stock market will face restrictions including a 20 per cent ceiling on combined foreign ownership of any listed stock, a major Saudi newspaper reported on Tuesday.

The Capital Market Authority, or CMA, announced in late July that the market would open to direct investment by foreign institutions in the first half of next year.

The CMA said it would publish draft regulations for the reform in August, before a 90-day public consultation period.

The Asharq Al Awsat newspaper quoted unnamed sources on Tuesday as saying the decision to open the market was based on the principle that foreigners would not be allowed to own more than 20 percent in total of the paid-up capital of any firm.

Also, "foreign funds will not be permitted to hold more than 10 per cent of the market value of Saudi stocks", the newspaper said without elaborating.

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Source: Khaleej Times (United Arab Emirates)

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