Saudi Arabia’s reforms to develop and open up its capital markets are part of Vision 2030, an economic reform plan aimed at boosting growth in the private sector and at diversifying the country’s economy beyond oil.
Saudi Arabia plans to make its capital market more accessible to foreign investors by giving them full access to NOMU, a parallel market recently launched for small and medium-sized enterprises, Mohammed El Kuwaiz, chairman of the Capital Market Authority (CMA) said on Thursday.
Non-resident foreign investors will be able to invest directly in the parallel market starting from January 1 next year, he said during an investment conference taking place this week in Riyadh.
Qualified foreign institutions were allowed to start investing directly in Saudi Arabia’s stocks market in 2015, and qualification requirements were eased in 2016. Saudi Arabia has now over 100 qualified foreign institutional investors, of which more than 20 percent registered in the past month, Mohammed El Kuwaiz said on Thursday.