Allowing foreigners to directly invest in the debt instruments market

The Capital Market Authority approved the instructions for international securities depository centers that were proposed by the Securities Depository Center Company, “Edaa”, to enable foreigners to directly invest in the debt instruments market in the Kingdom. The authority said that this step is consistent with the Kingdom’s Vision 2030, which includes the program for developing the financial sector, the sukuk market and debt instruments. She indicated that linking the international depository centers with the Securities Depository Center Company in the Kingdom comes within the framework of the Commission’s strategic goal of stimulating investment in the financial market and expanding the investor base, which contributes to raising the attractiveness of issuing sukuk and debt instruments in the local currency. It indicated that it has made many efforts and procedures in partnership with several bodies, including the Saudi Stock Exchange Company (Tadawul) and the National Debt Management Center to raise the attractiveness of the financial market and develop the market for sukuk and debt instruments, including the creation of a new index for the sukuk market and local debt instruments on the Tadawul website, reducing the value. The nominal value of government debt instruments, and exempting the issuers wishing to offer debt instruments in a public offering from paying the fees collected to the Authority upon submitting an application for registration of debt instruments, and upon studying the application and registration until the end of 2025 AD. Efforts also included restructuring the fees for services related to registration, listing and trading in the market. Sukuk and debt instruments, and allowing foreign investors to directly invest in debt instruments.

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