Saudi CMA vows to apply the best practices

30/11/2016 05:30 AST

The Saudi Capital Market Authority (CMA) participated Monday in the Islamic Finance News IFN Forum Saudi Arabia 2016, held in Jeddah with the participation of influential international and local speakers to discuss issues crucial to the development of Islamic finance in the Kingdom.

In an onstage dialogue, CMA Vice Chairman Mohammed Elkuwaiz highlighted CMA›s continuous efforts to develop the capital market and apply the best practices. He mentioned the amendments on the Qualified Foreign Financial Institutions Investment in Listed Securities (QFI) which was effective on September 4th 2016.

Elkuwaiz said giving QFIs direct access to the capital market will achieve objectives on the short and long run as well as enhance the market efficiency and motivate listed companies to improve the levels of transparency, disclosure and governance practices and adding the expertise of the specialized foreign investors to the local market. In addition, opening the Saudi market is important due to its size as it accounts for 50 percent of the market value of capital markets in the Gulf Cooperation Council (GCC), a market that contains opportunities in several sectors.

The CMA vice chairman explained that as part of CMA›s efforts to continuously develop the market. It is now seeking the public consultation on four Regulations which are: the Updated Corporate Governance Regulations, Second Market Listing Rules, Updated Merger and Acquisition Regulations, and Rules for Special Purpose Entities. He also mentioned the Authority›s Strategic Plan for the period 2015-2019 and that some amendments were made on it to be in line with, support and achieve the Kingdom›s 2030 Vision.

Saudi Gazette