Saudi Arabia's Capital Market Authority (CMA) has approved a regulatory framework for the offering of Saudi depositary receipts in the Saudi capital market that represent shares issued and listed in a foreign market, effective upon publication. The framework allows foreign companies to register and offer these depositary receipts in Saudi Arabia, subject to obtaining CMA approval. Registration and offering requirements will follow the existing requirements for registering and offering shares under the Rules on the Offer of Securities and Continuing Obligations. Issuers of Saudi depositary receipts will also be subject to the continuing obligations applicable to a foreign company listing shares on the Main Market under the Listing Rules, subject to certain exceptions; related amendments were made to the Rules on the Offer of Securities and Continuing Obligations and the Glossary of Defined Terms. Following adoption, Tadawul and the Securities Depository Center Company (Edaa) published amended Exchange Rules and Procedures. The changes follow a 30-calendar-day public consultation on draft amendments published on the National Competitiveness Center’s Public Consultation Platform and the CMA website.
Saudi Arabia Capital Markets Authority 2025-07-07
Saudi Arabia's Capital Market Authority approves framework enabling Saudi depositary receipts for foreign listed shares
Saudi Arabia's Capital Market Authority (CMA) approved a framework for Saudi depositary receipts representing foreign shares. This allows foreign companies to register and offer these receipts in Saudi Arabia, contingent on CMA approval, aligning with existing requirements. Amendments to related rules were published by Tadawul and the Securities Depository Center Company (Edaa) after public consultation.