DUBAI Aug 21 Saudi Arabia's stock market
regulator proposed rules for opening the $580 billion market to
direct investment by foreign institutions, including a rule
capping foreign ownership at 10 percent of the market's value.
Among other draft rules issued on Thursday, a single foreign
investor could own no more than 5 percent of any listed firm,
while all foreign institutions combined could own no more than
20 percent of a company.
The Capital Market Authority is expected to issue a final
version of the rules after a three-month consultation period.
Foreign institutions would need to qualify for permission to
invest; for example, they would need to have at least $5 billion
of assets under management and investment experience of no less
than five years.
Currently, foreigners other than residents of Saudi Arabia
and citizens of neighbouring Gulf states can only invest in the
market through indirect means such as swaps and exchange-traded
The CMA said last month that it would open the market in the
first half of next year.
(Reporting by Andrew Torchia; editing by Tom Pfeiffer)