Bloomberg/Muhammed Al Muaalemi
The Kingdom has since introduced a raft of reforms to attract overseas share buyers and issuers as part of efforts to lure foreign capital and diversify the oil-dependent economy.
Monday 07, October 2019
The Saudi Capital Market Authority (CMA) has introduced measures to facilitate the entry of foreign issuers to the Saudi stock market as well as encourage investment in NOMU, the Kingdom’s secondary market.
The CMA stated that it has adopted the amended rules on the offer of securities and continuing obligations, the amended instructions for companies announcement as well as the amended glossary of defined terms used in the regulations and rules of the CMA and approving the amended listing rules and the amended glossary of defined terms used in the exchange rules.
The rules will facilitate foreign issuers’ listings of their shares on the Tadawul.
Additionally, the regulator said that these amendments are in line with its objectives to regulate and develop the Capital Market as well as enhance its confidence and attract investments.
The amendment of the listing rules also introduced provisions that are related to the mechanism of transfer from the parallel market to the main market, provisions related to direct listing on the parallel market and provisions related to cross-listing of shares for foreign issuers, added the CMA.
The new measures follow an agreement earlier this year between Tadawul and the Abu Dhabi Securities Exchange (ADX) aimed at boosting dual listings in Saudi Arabia and the UAE.
The CMA also said that the other amendments concern the disclosure of bankruptcy proceedings under the country’s bankruptcy law in an effort to boost governance and transparency in the market.