The CMA Announces the Adoption of the Instructions for the Foreign Strategic Investors' Ownership in Listed Companies
Wednesday, June 26, 2019 at 3:39 PM
Wed Jun 26, 2019 15:39
In continuance to the Capital Market Authority’s (CMA) role to regulate and develop the capital market, and in its efforts to enhance the market’s efficiency and attractiveness and to expand the institutional investments base, and in line with its strategic plan (Financial Leadership Program) and the objectives of (the Financial Sector Development Program) one of the Saudi 2030 vision programs, and based on the Capital Market Law issued under the Royal Decree Number (M/30) Dated 2/6/1424H, the CMA Board has issued its decision to adopt the Instructions for the Foreign Strategic Investors' Ownership in Listed Companies "instructions", to be effective as of the date of their publication, after the Draft Instructions were made available for public consultation on the Authority’s website for a period of (30) calendar days. The aforementioned Board Decision further included amending subparagraph (a\2) of Article (14) of the Rules for Qualified Foreign Financial Institutions Investment in Listed Securities and paragraph (2) of Part (3) of the Guidance Note for the investment of Non-Resident Foreigners in the Parallel Market by adding the following statement: "except the foreign strategic investors pursuant to the Instructions for the Foreign Strategic Investors' Ownership in Listed Companies" to be read as follows: "The maximum proportion of the shares of any issuer whose shares are listed or convertible debt instrument of the issuer that may be owned by all foreign investors (in all categories, whether residents or non-residents, except the foreign strategic investors pursuant to the Instructions for the Foreign Strategic Investors' Ownership in Listed Companies) in aggregate is 49%.
The Instructions aim to regulate the provisions, requirements and conditions for the foreign strategic investors' ownership of a strategic shareholding in listed companies, in addition to determining the foreign strategic investors' obligations and the obligations of the Authorised Persons in this regard. During the preparation of these Instructions, the CMA considered all recommendations, observations and opinions received from investors, specialists and interested parties during the public consultation.
The Instructions can be viewed via the following links:
Instructions for the Foreign Strategic Investors Ownership in Listed Companies
التعليمات المنظمة لتملك المستثمرين الاستراتيجيين الأجانب حصصاً استراتيجية في الشركات المدرجة