Saudi Arabia Capital Markets Authority opened a public consultation on a draft regulatory framework that would introduce an Offshore Securities Business License. The proposed licence would allow local and international capital market institutions that hold a Ministry of Investment regional headquarters licence to conduct securities activities outside the Kingdom and to manage funds investing in securities within the Kingdom, serving foreign clients abroad as well as a specified category of local clients. The draft includes facilitated requirements for obtaining the licence, covering areas such as legal structure, minimum paid-up capital, registration of required positions and financial adequacy obligations, and notes that the offshore licence would have fewer regulatory requirements than existing licences while remaining subject to Saudi laws including the Capital Market Law and its implementing regulations. Eligibility would also extend to a legal entity affiliated with a local capital market institution that holds a Ministry of Investment licence, and the framework is positioned as complementing the Regional Headquarters Program for financial institutions. The consultation runs for 30 calendar days and closes on 28 June 2025, with feedback intended to inform the final proposed amendments.
Saudi Arabia Capital Markets Authority 2025-05-25
Saudi Arabia Capital Markets Authority launches consultation on a new Offshore Securities Business License framework
The Saudi Arabia Capital Markets Authority is consulting on a draft framework for an Offshore Securities Business License. This would allow institutions with a Ministry of Investment regional headquarters license to conduct securities activities outside the Kingdom and manage funds within it. The framework proposes reduced regulatory requirements, adhering to Saudi laws, and complements the Regional Headquarters Program for financial institutions.