Shearman And Sterling

Saudi Arabia

Jul 23, 2019

CMA Announces New Rules for Ownership in Listed Companies by Foreign Strategic Investors

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As part of the Kingdom of Saudi Arabia’s efforts to regulate and develop the capital markets and to facilitate foreign investment, the Capital Market Authority (CMA) has approved the Instructions for Foreign Strategic Investors’ Ownership in Listed Companies (the “FSI Instructions”), which came into effect on June 26, 2019. The FSI Instructions have removed the existing limit on the foreign ownership of a Saudi-listed company for foreign strategic investors (FSIs) that meet the FSI Instructions’ criteria, allowing them to take controlling stakes in Saudi-listed companies. The FSI Instructions are complementary to the “Rules for Qualified Foreign Financial Institutions Investment in Listed Securities” (the “QFI Rules”) approved by the CMA in 2015 (as amended).

Read “CMA Announces New Rules for Ownership in Listed Companies by Foreign Strategic Investors.”

Authors and Contributors

Marwan Elaraby

Partner

Capital Markets

+971 4 249 2123

+971 4 249 2123

+971 2 410 8123

+971 2 410 8123

+1 212 848 4947

+1 212 848 4947

Dubai

Dr. Sultan Almasoud*

Partner

Mergers & Acquisitions

+966 11 213 7801

+966 11 213 7801

* Partner, Dr. Sultan Almasoud & Partners in Association with Shearman & Sterling LLP

* Partner, Dr. Sultan Almasoud & Partners in Association with Shearman & Sterling LLP

Riyadh

Sanjarbek Abdukhalilov

Consultant

Mergers & Acquisitions

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+966 11 213 7802

Riyadh

Matthew Powell

Partner

Mergers & Acquisitions

+971 4 249 2125

+971 4 249 2125

+971 2 410 8125

+971 2 410 8125

Dubai

Brendan Hundt

Counsel

Project Development & Finance

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+966 11 213 7805

+971 2 249 2160

+971 2 249 2160

Riyadh