{"id":145202,"date":"2025-08-11T13:26:18","date_gmt":"2025-08-11T10:26:18","guid":{"rendered":"https:\/\/salamahlaw.com\/?p=145202"},"modified":"2026-01-24T16:32:50","modified_gmt":"2026-01-24T13:32:50","slug":"what-are-the-conditions-for-qualified-foreign-investors-to-invest-in-saudi-securities","status":"publish","type":"post","link":"https:\/\/salamahlaw.com\/en\/what-are-the-conditions-for-qualified-foreign-investors-to-invest-in-saudi-securities\/","title":{"rendered":"What Are the Conditions for Qualified Foreign Investors to Invest in Saudi Securities?"},"content":{"rendered":"

The Kingdom of Saudi Arabia has strategically and systematically opened its financial market to foreign investors by implementing regulations that prevent foreign capital from dominating strategic companies. To that end, the Capital Market Authority (CMA) issued the <\/span>Rules for Qualified Foreign Investors Investment in Listed Securities<\/span><\/i>, which formalized the QFI Program as the principal mechanism for this market liberalization. Under this framework, foreign institutions are permitted to invest in listed securities, subject to specific conditions.<\/span><\/p>\n

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This article by <\/span>Alsalamah Law Firm<\/span><\/i><\/a> outlines the legal requirements for Qualified Foreign Investors to invest in Saudi securities.<\/span><\/p>\n

 <\/p>\n

Who Is a Qualified Foreign Investor Permitted to Invest in Saudi Securities?<\/b><\/h2>\n

Article One of the Rules defines a Qualified Foreign Investor as a foreign investor who meets the requirements set forth in Chapter Three of the Rules for investing in shares listed on the Main Market.<\/span><\/p>\n

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Conditions to Qualify as a QFI:<\/b><\/p>\n

According to Article Seven of the Rules, an entity seeking QFI status must meet <\/span>two fundamental legal conditions<\/b>:<\/span><\/p>\n

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  1. \n

    Legal Personality:<\/b>
    \n<\/b><\/h3>\n

    The applicant must be a legal person, such as a company, institution, or fund. This excludes natural persons from directly investing under the QFI program and emphasizes institutional, long-term investment.<\/span><\/p>\n

     <\/li>\n

  2. \n

    Minimum Asset Value:<\/b>
    \n<\/b><\/h3>\n

    The applicant (either individually or as part of a group) must own, manage, or have custody of assets valued at no less than SAR 1,875,000,000 (1.875 billion Saudi riyals), or the equivalent in foreign currencies.<\/span><\/p>\n

     <\/li>\n<\/ol>\n

    What Does \u201cAssets Owned, Managed, or Held in Custody\u201d Mean?<\/b><\/h3>\n

    This concept includes three categories of assets to determine the institution’s total qualifying asset base:<\/span><\/p>\n