2019 Q4 Report En · Page 5

 
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Financial Sector Development Highlights 
The Capital Market Authority Announces the Adoption of 
the Amended Rules on the Offer of Securities and Continuing 
Obligations 
The Capital Market Authority (CMA) Board has adopted the 
amended Rules on the Offer of Securities and Continuing 
Obligations (the Rules). Initiated on 1/1/2020. One of the 
amendments that have been adopted to the Rules will allow 
foreign issuers to list their shares on the main market. And allow 
all foreign segments investors  to invest directly in the foreign 
issued shares listed on the main market. In addition, the imposed 
restricted investment rules by CMA's regulations will not be 
obligatory to the investments made by foreign investors in the 
listed foreign companies in the main market. 
On the other hand, amendments aim also at developing the 
Parallel Market (Nomu) and promoting the trading and listing in 
the market allowing the direct listing in the Parallel Market. Also, 
the amendments included the expansion of listing so that it is not 
limited to expert investors. This is in continuance to the CMA’s 
effort to regulate and develop the capital market, in addition to 
deepening it and promoting its role in the attractiveness of the 
market. In line with the Financial Sector Development Program 
objectives.  
The Capital Market Authority (CMA) Opens the Door to 
Apply for a Financial Technology Experimental Permit 
(FinTech ExPermit) for the 3rd Batch 
The CMA welcomed applications for the 3rd batch for the FinTech 
ExPermits effective from 01/12/2019 through 30/01/2020. The 
CMA looks forward to receiving new models in this batch, these 
include facilitating the distribution of investment products and 
increasing the efficiency of services provided to investors. The 
Authority had previously announced the opening of the first 
batch of applications in February 2018 and had received a 
number of FinTech applications. It had granted the FinTech 
ExPermit to two applicants to create an equity crowdfunding 
platform. The second batch of FinTech applications opened in 
October 2018. The CMA had again received a number of 
applications and had so far granted the FinTech ExPermit to six 
applicants to create an equity crowdfunding platform, as well as a 
robo-advisory platform. 
This initiative aims at enhancing the innovation and development 
of technology in the financial market and providing a supportive 
regulatory framework for the participants to conduct their work 
efficiently in light of the rapid development in the exploitation of 
financial technology (FinTech) associated with the securities 
business in the Kingdom; and to find new financing and 
investment means for  entrepreneurs and investors based on the 
strategy of the CMA in facilitating financing and stimulating 
investment under the umbrella of the Financial Sector 
Development Program (FSDP). 
Listing and Trading Government Debt instruments in the 
Saudi Stock Market 
The Saudi Stock Exchange Company (Tadawul) approved during 
the fourth quarter of 2019 the request submitted by the Ministry 
of Finance to list debt instruments issued by the government of 
the Kingdom of Saudi Arabia in accordance with the listing rules 
with a total value of (1,783,900,000) riyals. And the inclusion of 
government debt instruments from a previously listed category 
with a total value of (11,994,561,000) riyals. 
The Financial Academy Has Signed Agreements and 
Memoranda of Cooperation with a Num