The Saudi Arabian stock market, a global performer in IPOs, holds immense potential for investors. With an overall value of SR11.2b (Dh10.9b) as of December 2023, the Saudi Exchange is the ninth-largest globally, offering lucrative opportunities for capital growth in the Middle East.
Owned by the Saudi Tadawul Group, the Saudi Exchange serves as the official exchange of the Kingdom, facilitating listing, trading, deposits, transfers, clearing, and settlements. Various investment avenues, including equities, Sukuk and bonds, ETFs, REITs, CEFs, and derivatives, make it a diverse market for potential investors.
However, investing in the Saudi stock market comes with qualifying criteria, risks, and potential returns that demand careful analysis. Eligibility is limited to Saudi and GCC nationals, registered Saudi residents, and specific entities, with qualifying conditions outlined by the Securities Depository Center Company (Edaa).
This guide explores the necessary documents for eligibility, including identification cards, residency proof, and commercial documents for companies. It also highlights the Qualified Foreign Investor (QFI) program, which extends investment opportunities to institutional investors.
International investors seeking to participate must adhere to QFI regulations, providing essential documentation such as certificates of incorporation, regulatory status evidence, and financial statements. Regulatory oversight and a minimum asset under management of $500m are prerequisites for non-government-related entities.
For a streamlined investment experience, the guide introduces Nomu, the Saudi Parallel Market, with lighter listing requirements. Nomu caters to various entities, including capital market institutions, government bodies, international authorities, GCC-based companies, and qualified foreign financial institutions.
Whether you are a local or international investor, understanding the regulations, eligibility criteria, and alternative platforms like Nomu is crucial for a successful investment journey in the dynamic Saudi Arabian stock market.
