Saudi Arabia's Capital Markets Authority (CMA) has opened a public consultation on a draft regulatory framework to regulate the offering of depositary receipts in the Saudi capital market. The proposals would introduce depositary receipts as a new security type, enabling foreign companies to register and offer instruments in Saudi Arabia that represent their shares listed in a foreign market. Under the draft, a foreign company would be able to register and offer depositary receipts in Saudi Arabia, subject to CMA approval. Once an offer is approved, investors would trade, settle and clear the depositary receipts using the same Saudi market procedures that apply to other securities, with registration and offering requirements intended to align with the current share offering framework under the Rules on the Offer of Securities and Continuing Obligations. Related draft amendments to the Saudi Exchange (Tadawul) rules and procedures have also been published for consultation by Tadawul and the Securities Depository Center Company (Edaa). Comments are requested over a 30-day consultation period ending 07/02/2025.
Saudi Arabia Capital Markets Authority 2025-01-08
Saudi Arabia's Capital Markets Authority launches consultation on a new framework for foreign company depositary receipts
Saudi Arabia's Capital Markets Authority has launched a public consultation on a draft regulatory framework for depositary receipts in the Saudi capital market. The proposals aim to introduce depositary receipts as a new security type, allowing foreign companies to register and offer these instruments in Saudi Arabia, representing their shares listed abroad. The draft aligns registration and offering requirements with existing share offering frameworks, with related amendments to Tadawul and Edaa rules also open for consultation.