Saudi Arabia has introduced measures to facilitate the entry of foreign issuers to the Saudi stock market and encourage investment in NOMU, the country's secondary market, the Saudi Capital Market Authority (CMA) said on Sunday. The Saudi main stock exchange, Tadawul, opened to foreign investors in 2015. The kingdom has since introduced a raft of reforms to attract overseas share buyers and issuers as part of efforts to lure foreign capital and diversify the oil-dependent economy.
CMA said on Sunday it had adopted rules that will facilitate foreign issuers' listings of their shares on the main Saudi market. The move will "create greater opportunities for diversification of investment for investors," Mohammed bin Abdullah Elkuwaiz, Chairman of the Capital Market Authority, said in a statement. The new measures follow an agreement earlier this year between Tadawul and the Abu Dhabi Securities Exchange (ADX) aimed at boosting dual listings in Saudi Arabia and United Arab Emirates.
In February, Tadawul's Chief Executive, Khalid al-Hussan, said the Saudi exchange and CMA were working with potential investors in Gulf countries on new rules to allow cross-border listings on Saudi Arabia's stock market.
The CMA also said on Sunday the measures - which amend existing rules on how securities are offered - will promote trading and listing in NOMU, a parallel market with lighter listing rules for smaller firms. Other amendments concern the disclosure of bankruptcy proceedings under the country's bankruptcy law in an effort to boost governance and transparency in the market, the CMA said.