Investment regulation – Saudi Arabia

Market entry requirements

Only legal or natural persons, that are non-Saudi or non-residents of Saudi Arabia and are a customer or an underlying client of a client of CBL can access the Saudi link and hold Saudi Arabian securities via CBL.

Clients who wish to access the Saudi Arabian market via CBL should familiarise themselves with the local market requirements. In particular, clients should ensure that neither they, nor their underlying clients, are mentioned as nationally designated names as per the attached link in Saudi Arabia including sanctions requirements which will be applicable to clients who engage on the local market subject to such requirements.

Holding restrictions

Gulf Cooperation Council (GCC) specific ownership limits and restrictions:

• Under CMA regulations, GCC nationals and entities wholly owned by GCC citizens or GCC governments are not classified as foreign investors. The 10% individual limit and 49% aggregate foreign ownership limit do not apply to qualifying GCC holdings. 

• GCC-incorporated entities that do not meet the statutory ownership definition are treated as foreign investors and are subject to foreign ownership limits.

• All GCC holdings remain subject to any restrictions in an issuer’s Articles of Association or applicable sector laws.

General ownership limits and restrictions:

• A non-resident foreign investor cannot hold 10% or more of the issued shares or convertible debt instruments of a listed issuer.The default aggregate foreign ownership limit is 49% of the issued shares or convertible debt instruments of a listed issuer (applying to all foreign investors, resident or non-resident). Listed issuers may increase or lift this limit up to 100% via their Articles of Association, subject to sector-specific legislation. 

• Convertible debt instruments count towards both the 10% individual limit and the aggregate foreign ownership limit.

• No statutory foreign ownership limits apply to units of local mutual funds.

Instructions for international central securities depositories:

• Only legal or natural persons, that are non-Saudi or non-residents of Saudi Arabia and are a customer or an underlying client of a client of CBL can access the Saudi link and hold Saudi Arabian securities via CBL.
• No foreign ownership limits apply to Saudi Government bonds and sukuk, non-convertible corporate debt instruments and sukuk, or listed ETFs.

Disclosure requirements

For details of the local domestic disclosure requirements, please refer to Disclosure Requirements - Saudi Arabia.