Swap Agreements Framework Saudi

The expansion of equity holding is part of the Kingdom`s efforts to open its capital markets to international investors and reduce its dependence on oil-based income. The introduction of the ISP guide is an important step towards consolidating Tadawul as the main exchange in the MENA region to ensure that foreign investors wishing to invest in the region do not face excessive regulatory barriers. Mohammed El-Kuwaiz said, « Companies wanted to take strategic stakes, but they didn`t have a legal framework, so we created one. » Historically, foreign ownership of the shares of listed companies in the kingdom has traditionally been a highly regulated system. Until the introduction of QFI rules in 2015, foreign investors could not invest directly in Tadawul listed securities, but could only invest indirectly through swap agreements with persons authorized by the CMA. The Kingdom Stock Exchange and its Debt Management Office (DMO) have announced a reduction in commissions and commissions to support the secondary debt market. The DMO also lowered the face value of the state-issued sukuk from 1 million Saudi rials to a thousand, signalling new government efforts to facilitate retail investors` access to the bond market. As explained above, the ISF`s instructions do not set a minimum or maximum ownership limit for strategic participation, and ISPs are exempt from the 49% limit of foreign owners set by QFI rules. However, the investment restrictions on ISFs are as follows: to qualify as an ISP, you need a foreign investor: the kingdom has embarked on a series of reforms in recent years, receiving the support of international index compilers MSCI and FTSE Russell, as it tries to position its stock exchange as an international capital market hub. Saudi Arabia`s stock market is the largest in the Middle East and Africa, with a capitalization of $540 billion, and has seen an increase in foreign cash flows since the beginning of the year due to listing in emerging market indices. The number of foreign investors, including strategic partners, increased from nearly 4% in January to 7% in June 2019, due to the arrival of financial investors and The inclusion of Tadawul in emerging market global indices. Most of these companies are subject to rules limiting the ownership of Saudi and foreign investors.

For these sectors, the own contribution is limited to 70%. « News feeds are very relevant and current. I insinuate a company`s expertise to view their articles. In this respect, the lexology offers a buffet and I do the evaluation. The quality of news feeds is good, and I am happy to read the contributions of different companies on the same subject, because they allow to compare their discoveries. In addition, cross-border offers are becoming more frequent. The successful completion of the sale of shares in the commercial operator Arabian Centers Company, which is part of the Fawaz Alhokair Group, is the first bid in the United Kingdom under SEC Rule 144A, which allows securities to be sold primarily to qualified institutional buyers (QIBs) in the United States. In addition, it is reported that at least six Gulf companies have expressed interest in listing on the Saudi stock exchange. According to Mohammed El-Kuwaiz, « strategic investment conditions apply to all shares listed on the Saudi capital market, with the exception of only three categories »: under the new rules, foreign ownership of shares will no longer be limited to qualified foreign investors (QFIs) (i.e.

financial companies with assets under management of at least $500 million); ISFs can take shares in publicly traded companies by buying shares directly on the market or through private transactions and IPOs.