Cautious optimism surrounds Saudi QFI rules

Author: Tom Young | Published: 13 May 2015

Saudi Arabia’s new regulations granting Qualified Foreign Investors (QFIs) access to the country’s Tadawul All Share Index have been well received, but are not expected to create a flood of investment in the country.

The rules, which were published on the Capital Market Authority’s (CMA) website on May 4 mean foreign investors can own up to 49% of a single stock, and institutional foreign investors with at least $5 billion under management can invest directly in the stock market.

The framework will offer legal ownership of Saudi-listed shares under the name of the investor in the depository centre, after which investors will be able to exercise their rights...