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Mon 7 Oct 2019 10:27 AM

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Saudi Arabia issues new rules on listing of foreign companies

The Saudi changes are also aimed at encouraging foreign investment in Nomu, the country's parallel equity market

Saudi Arabia issues new rules on listing of foreign companies
The changes are also aimed at encouraging foreign investment in Nomu, the Tadawul's parallel equity market with more relaxed listing rules for smaller companies.

In the latest move to attract foreign investment, Saudi Arabia has introduced new rules on how securities are offered in a bid to facilitate foreign issuers’ listings of shares on the kingdom’s main stock exchange Tadawul, the Saudi Capital Market Authority (CMA) announced on Sunday.

The changes are also aimed at encouraging foreign investment in Nomu, the Tadawul's parallel equity market with more relaxed listing rules for smaller companies.

CMA chairman Mohammed bin Abdullah Elkuwaiz said the new rules will “create greater opportunities for diversification of investment for investors”.

Tadawul, which opened to foreign investors in 2015, signed an agreement with the Abu Dhabi Securities Exchange (ADX) earlier this year in a bid to encourage dual listings in Saudi Arabia and the UAE.

Its CEO Khalid al-Hussan said in February that Tadawul and the CMA are working with investors in the GCC to allow cross-border listings on the Saudi stock exchange.

Moreover, the new measures include changes to the disclosure of bankruptcy proceedings as the CMA looks to boost corporate governance and transparency.

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