Saudi CMA Chairman: Investment Account Changes Allow Residents to Continue Saudi Market Investments After Returning Home

With the approval of new amendments, residents in Gulf countries, or those who previously resided in Saudi Arabia or the Gulf, can now continue their investments in the Saudi financial market even after returning to their home countries, according to Mohammed Elkuwaiz, Chairman of the Capital Market Authority (CMA) board.

In a post on X, Elkuwaiz explained that this move enhances the market’s international openness and builds long-term investment relationships with a broader range of global investors within a more flexible and attractive regulatory environment.

The CMA board approved several amendments on Thursday aimed at facilitating investment account opening procedures for various categories of investor clients. These changes are part of the draft “Amendment of Investment Accounts Instructions, Rules Regulating Foreign Investment in Securities, and Financial Market Institutions Regulations.” They will take effect from the date of publication.

This regulatory framework was adopted to keep pace with regulatory and technological developments in Saudi Arabia and to simplify investment in the Saudi financial market by improving investment account opening and operational procedures, including the introduction of new investor categories and the regulation of transactions on these accounts. This will enhance the Saudi financial market’s appeal to local and international investors, increase investor protection, and support participant confidence.

Among the key approved elements is the development of requirements for opening investment accounts for individual foreign (natural) investors residing in a GCC country. The scope of securities they can directly invest in has been expanded to include shares listed on the main market. Previously, their presence was limited to the debt instruments market, the Nomu parallel market, investment funds, and the derivatives market. Trading in the main market was conditioned on investment contracts as an ultimate beneficiary through a swap agreement with a financial market institution, or as a client of financial market institutions that make investment decisions on their behalf. This approval will introduce a new category of investors in main market-listed shares and provide this category with a new security for their investments in the Saudi financial market, thereby contributing to the attraction of more foreign investments, increased liquidity, and enhanced support for the local economy.

The approved amendments also allow individual foreign investors who previously resided in Saudi Arabia or a GCC country to continue operating their investment accounts and investing in main market-listed shares even after their residency ends. They return to their country, provided they had previously opened an investment account in the Kingdom.

Furthermore, the amendments aim to simplify the procedures for opening and operating investment accounts for various categories of clients of financial market institutions.