Sunday, August 17, 2025
Foreign Investors Can Own Up to 49% in Saudi Companies, Says CMA
The Saudi Capital Market Authority (CMA) has set new rules for foreigners who want to invest in Saudi companies.
➤ All foreign investors together can own up to 49% of a listed company’s shares.
➤ Strategic foreign investors don’t have this limit, but they must keep their shares for at least two years. Trending: Saudi Arabia approves Digital ID for foreigners to own property
➤ A single non-resident foreign investor can own only up to 10% of shares in a listed company.
➤ Debt can’t be changed into shares unless the investor is approved or through swap deals.
➤ Mandatory publication of periodic statistics clarifying the percentage of foreign ownership in listed companies.
Who Can Invest?
Foreign investors are permitted to invest only if they meet the following criteria:
1. Qualified foreign investors (QFIs)
2. Strategic foreign investors
3. Beneficiaries of swap deals with licensed institutions
4. Clients of CMA-licensed management firms
5. Residents of GCC countries
6. Former residents of Saudi Arabia or the GCC with an active investment account. Most Viewed: Saudi Expatriates can now check their exit re-entry visa status online
Criteria for qualifying a Qualified Foreign Investor:
■ The investor must be a legal entity, such as a company or fund.
■ Must have or manage assets worth approximately no less than 1.875 billion riyals, with exceptions for certain types such as pension funds, endowment funds, government entities, sovereign funds, and others.
Rules for Swap Deals
Licensed institutions must:
✅ Keep client money and assets separate
✅ Fully cover all transactions
✅ Control voting rights of swapped shares
✅ Follow anti-money laundering laws
Exemptions
The CMA can give exceptions to some investors if requested or when needed. Join Saudi Expatriates news group on Signal app
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| Foreign Investors Can Own Up to 49% in Saudi Companies, Says CMA |
