RIYADH: Saudi Arabia’s Capital Market Authority is seeking to attract more foreign investments and improve market accessibility by inviting feedback on proposed amendments to account procedures.

The proposed changes aim to align the Kingdoma’s capital market with global regulatory and technological advancements, making it easier for local and international investors to open accounts.

The body is looking for feedback on the proposals, which also include opening doors for non-profit organizations and endowments to invest, diversifying the base.

The consultation period will last for 30 days, ending on Dec. 20.

Key changes include the introduction of a new category allowing individual foreign investors residing in the Gulf Cooperation Council countries to invest in shares listed on the Saudi main market directly.

“As global markets continue to expand and evolve, the next phase necessitates enhancing the international presence of the Saudi capital market and increasing its appeal to investors across the region,” according to data revealed by CMA to Arab News.

The data also highlighted that, in practical terms, the CMA has been working to remove regulatory challenges and develop mechanisms to foster the growth of foreign investments in the Saudi capital market.

This comes as the CMA also seeks public feedback on amendments to investment fund regulations particularly in the retail market. The changes aim to improve protections for retail investors, building on the 2021 rule that allowed individual investments up to SR200,000 ($53,245).

Previously, these backers were limited to trading in the debt market, the parallel market Nomu, investment funds, and derivatives, with their main market involvement restricted to swap agreements through capital market institutions.

The proposed amendments will provide these investors with direct access to the main market, potentially attracting more foreign capital, enhancing liquidity, and supporting the local economy.

The CMA is also seeking to simplify the process for opening and operating investment accounts for various types of capital market institution clients.

This includes easing the requirements for endowments, further broadening the investor base, and enhancing access to the Saudi market.

These reforms reflect the Kingdom’s ongoing efforts to modernize its capital market, making it more inclusive, competitive, and appealing to local and international investors.

The CMA is enabling former residents of Saudi Arabia and the GCC to retain access to the market even after relocating, boosting investor confidence.

The authority’s proposal also opens doors for non-profit organizations and endowments to invest, diversifying the investor base.

According to CMA’s data to Arab News, by the end of the first half of 2024, the value of foreign ownership in the capital market had reached SR402.43 billion, increasing by approximately 5.6 times since Dec. 2015, the year foreign investment was first allowed in the Saudi capital market.

In Dec. 2015, the value was SR72.15 billion, reflecting the various facilitations provided by the market, which contributed to attracting these investments.

“The Saudi Market continues to develop regulatory frameworks and supportive laws to attract foreign investments, promote inclusion in global indices, and offer attractive investment opportunities for international investors,” CMA’s data emphasized.

Through adopting various strategic initiatives, the aim is to diversify the investor base and participants in the market, helping the Saudi capital market to become a leading regional and global financial hub.

On Nov. 13, CMA approved its largest regulatory overhaul to date for the sukuk and debt instruments market, marking a significant step in the country’s financial sector development.

The newly approved changes introduce key amendments to the rules on the offer of securities and continuing obligations, particularly related to the issuance of debt instruments.

These adjustments simplify prospectus requirements for public, private, and exempted offerings, streamlining the process and reducing regulatory burdens.

The changes will take effect as soon as they are published and are designed to attract a wider range of issuers and foster deeper investment in the market.

RIYADH: Saudi Arabia’s ACWA Power has entered into an agreement with Japan’s ITOCHU Corp. during COP29 to strengthen investments in environmental infrastructure and renewable energy across the Middle East, Central Asia, and Africa.

As outlined in a press release, the memorandum of understanding aligns with ACWA Power’s broader mission to address the “energy quadrilemma” — ensuring energy and water are provided affordably, reliably, sustainably, and rapidly.

Both companies share a vision for accelerating the global energy transition, leveraging their unique strengths to create transformative solutions in renewables and water desalination.

Marco Arcelli, CEO of ACWA Power, expressed his enthusiasm: “We are thrilled to strengthen our strategic collaboration with ITOCHU Corp. through this new memorandum of understanding, signed at COP29 in Azerbaijan.”

He further added: “This partnership — which spans across various geographies and technologies — will benefit from our expertise in renewable energy sources, water desalination, and green hydrogen.”

Arcelli highlighted the company’s commitment to achieving net-zero emissions by 2050, a full decade ahead of Saudi Arabia’s national target, noting that it “aligns perfectly with the global sustainability agenda.”

The MoU, in collaboration with ITOCHU’s extensive network and resources, will facilitate mutual growth ambitions and open up new opportunities for Japanese investors in the clean energy sector, according to the CEO. “Together, we are poised to make significant strides in accelerating the energy transition and addressing climate change challenges,” he concluded.

Headquartered in Riyadh, ACWA Power is the world’s largest private water desalination company and a leader in renewable energy and green hydrogen. Its portfolio spans 90 projects in 13 countries, with a total investment value of $94.7 billion.

ITOCHU Corp., founded in 1858, is one of Japan’s leading multinational trading and investment companies. With operations in 61 countries and approximately 90 bases worldwide, ITOCHU boasts a diversified portfolio that includes renewable energy projects and water infrastructure.

Through this partnership with ACWA Power, “ITOCHU aims not only to contribute to regions expecting economic growth and population increases but also to achieve a balance between responding to societal needs and business expansion.”

The collaboration is expected to advance progress in renewable energy projects, including high-efficiency combined cycle power plants and green hydrogen production, with both companies dedicated to addressing climate change and advancing global sustainability initiatives.

Earlier this year, ACWA Power signed multiple agreements with Japanese companies on May 21, during the Saudi-Japan Vision 2030 Business Forum, to further the sustainable energy transition and attract foreign investment.

The forum, held in Tokyo, brought together over 300 industry officials and leaders to discuss ways to enhance trade, investment, and cultural ties.