Foreigners can now invest in Saudi stock exchange

August 20th, 2008 - 11:24 pm ICT by IANS  

Dubai, Aug 20 (IANS) Saudi market authorities Wednesday approved a new law that will allow non-resident foreign investors to invest in Saudi Arabia’s stock exchange.Under the new law passed by the board of the Capital Market Authority (CMA), foreign investors, whether individuals or institutional, can enter into “swap agreements” with “authorized persons” or Saudi nationals who will own the shares.

These authorized persons can then pass on the profits, if any, to the foreign investors while retaining legal ownership of the shares listed on the Saudi stock exchange, Tadawul, officials explained.

Till now foreigners were not allowed to invest in Saudi stock markets.

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