Logo ofThe Capital Market Authority (CMA)
The Capital Market Authority (CMA) called upon relevant and interested persons participating in the capital market to share their feedback on the draft regulatory framework to the offer of depositary receipts in the Saudi Exchange (Tadawul) for a period of 30 days ending on Feb. 7, 2025. 
The draft aims to introduce a new security by regulating the offering of depositary receipts in Tadawul that represent shares of a foreign company. This will contribute to deepening the market, enhancing its role in capital formation, and increasing its attractiveness by providing additional listing options and diversifying investment products in the capital market.
According to the proposed draft regulatory framework, CMA will allow foreign companies to register and offer depositary receipts in Tadawul that correspond to their shares in the foreign financial market, upon obtaining approval.
Once the CMA approves the offering request, investors in Tadawul will be able to invest in depositary receipts corresponding to the shares of a foreign issuer listed in a foreign market. These investments will follow the same procedures applicable in Tadawul concerning trading, settlement, and clearing.
In 2020, CMA allowed companies listed on the local capital market to issue certificates of deposit outside Saudi Arabia in exchange for their shares traded in Tadawul. This move aims to strengthen the pillars of Saudi Vision 2030, which seeks to make Tadawul attractive to both local and foreign investors. Consequently, it is now proposed to offer depositary receipts to foreign companies in exchange for their issued shares in a foreign market.
According to the proposed draft regulatory framework, the requirements for registering and offering depositary receipts will be similar to those for shares, as currently outlined in the rules on the offer of securities and continuing obligations.
CMA emphasized that the comments of relevant and interested persons will be taken into full consideration for the purpose of finalizing the draft. Opinions and comments can be received through any of the following:
•The Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the National Competitiveness Center, through the following link: (istitlaa.ncc.gov.sa).
•The prescribed form through the following email: (Laws.Regulations@cma.org.sa).
In light of the Draft Amendments, Tadawul and the Securities Depository Center Co. (Edaa) announced the publication of the draft amendments to the exchange rules and procedures for public consultation.
Logo ofThe Capital Market Authority (CMA)
The Capital Market Authority (CMA) called upon relevant and interested persons participating in the capital market to share their feedback on the draft regulatory framework to the offer of depositary receipts in the Saudi Exchange (Tadawul) for a period of 30 days ending on Feb. 7, 2025.
The draft aims to introduce a new security by regulating the offering of depositary receipts in Tadawul that represent shares of a foreign company. This will contribute to deepening the market, enhancing its role in capital formation, and increasing its attractiveness by providing additional listing options and diversifying investment products in the capital market.
According to the proposed draft regulatory framework, CMA will allow foreign companies to register and offer depositary receipts in Tadawul that correspond to their shares in the foreign financial market, upon obtaining approval.
Once the CMA approves the offering request, investors in Tadawul will be able to invest in depositary receipts corresponding to the shares of a foreign issuer listed in a foreign market. These investments will follow the same procedures applicable in Tadawul concerning trading, settlement, and clearing.
In 2020, CMA allowed companies listed on the local capital market to issue certificates of deposit outside Saudi Arabia in exchange for their shares traded in Tadawul. This move aims to strengthen the pillars of Saudi Vision 2030, which seeks to make Tadawul attractive to both local and foreign investors. Consequently, it is now proposed to offer depositary receipts to foreign companies in exchange for their issued shares in a foreign market.
According to the proposed draft regulatory framework, the requirements for registering and offering depositary receipts will be similar to those for shares, as currently outlined in the rules on the offer of securities and continuing obligations.
CMA emphasized that the comments of relevant and interested persons will be taken into full consideration for the purpose of finalizing the draft. Opinions and comments can be received through any of the following:
•The Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the National Competitiveness Center, through the following link: (istitlaa.ncc.gov.sa).
•The prescribed form through the following email: (Laws.Regulations@cma.org.sa).
In light of the Draft Amendments, Tadawul and the Securities Depository Center Co. (Edaa) announced the publication of the draft amendments to the exchange rules and procedures for public consultation.
