Saudi Regulator Amends Rules for QFIs on Security Trading
- Rules lower minimum assets under management or custody
- Kingdom is implementing reforms to open up its stock market
This article is for subscribers only.
Saudi Arabia will lower minimum assets under management for qualified foreign institutions starting this month and will allow foreigners to own up to 49 percent of listed securities as it opens up its stock market and plans what could be the world’s biggest initial public offering.
The regulator raised the limit for a single qualified foreign investor in a company to 10 percent and set the ceiling for foreign holdings in all categories, whether resident or non-residents, at 49 percent, the Capital Market Authority said in a statement on Tuesday. In an initial proposal in 2014 that became effective the following year, the regulator had set a 5 percent limit for a QFI in a single company.