The Capital Market Authority announced its approval to lower the minimum required value of assets managed by foreign companies wishing to invest in listed stocks to 3.75 billion riyals or more, instead of 18.75 billion riyals or more.

This was announced in a statement issued by the Authority regarding amendments to the rules governing investments by qualified foreign institutions in listed stocks, wherein the Authority agreed to expand the categories of eligible foreign financial institutions to include government funds, university endowments, and other entities approved for registration by the Authority.

In its statement, the Authority announced the removal of the investment restrictions set forth in subparagraphs (A/1), (A/2), and (A/4) and (a/5) of Article 6 of the rules governing investment by qualified foreign financial institutions in listed shares, allowing foreign investors to hold larger stakes, provided that they do not exceed 10% of the shares of any issuer per investor, and to maintain the restriction prohibiting foreign investors collectively (in all categories, whether resident or non-resident) to own more than 49% of the shares of any issuer whose shares are listed on the market, unless the company’s articles of incorporation or any other regulation stipulates that foreign ownership is not permitted or specifies a lower percentage.