Fsdp Quarterly Newsletter Q2 2023 · Page 6

 
6  | 
The Capital Market Authority Approves the Rules for 
Foreign Investment in Securities 
The Capital Market Authority ("CMA") approved the Rules 
for Foreign Investment in Securities (the “Rules"), 
Amendments to the Investment Accounts Instructions, 
Amendments to the Implementing Regulation of the 
Companies Law for Listed Joint Stock Companies and 
Amendments to the Glossary of Defined Terms Used in the 
Regulations and Rules of the Capital Market Authority, 
which shall be effective as of the date of their 
publications , The approval of the Rules, Instructions and 
Glossary aim to develop the provisions regulating foreign 
investment in securities, facilitate access to the 
regulatory frames regulating foreign investment in 
securities by collecting the regulating provisions in a 
single regulatory document, as well as facilitating 
qualified foreign investors' (QFIs') entry procedures to 
invest in the Saudi capital market. 
The last Amendments comprised considering facilitating 
the 
QFIs' 
requirements, 
facilitating 
disclosure 
requirements and continuous obligations to ease Saudi 
capital market entry with the aim of minimizing the 
differences between QFIs and other investor categories in 
the Saudi market. 
The National Debt Management Center Announces the 
Completion a USD 6 Billion Trust Certificates issuance  
The 
National 
Debt 
Management 
Center 
(NDMC) 
announced the completion of receiving investors ' 
requests for the international trust certificates issuance 
(Sukuk), with a total value of USD 6 billion under the 
Kingdom's Global Trust Certificate Issuance Program. 
The total order book reached over USD 27 billion, which 
equals an oversubscription of 4.5 times the total of USD 6 
billion issuance (equivalent to SAR 22.50 billion) via a 
dual-tranche Trust Certificates (Sukuk) offering. The 
value of the first tranche was USD 3 billion (equivalent to 
SAR 11.25 billion) for a 6-years Sukuk maturing in May 
2029 with a 4.274% profit rate. The second tranche 
totaled USD 3 billion (equivalent to SAR 11.25 billion) for 
a 10-years Sukuk maturing in May 2033 with a 4.511% 
profit rate. 
Fitch upgrades its credit rating of the Kingdom of Saudi 
Arabia to A+ with a Stable Outlook  
Fitch Ratings has recently upgraded its Saudi Arabia's 
Rating to 'A+' with a Stable Outlook. 
The agency indicated in its report that this rating upgrade 
reflects the Kingdom's strong fiscal and external balance 
sheets with large sovereign net foreign assets compared 
to 'AA' median and debt/GDP half of 'A' medians. In its 
press release, the Agency praised the Kingdom continued 
progress with fiscal, economic and governance reforms 
while pointing to the Kingdoms formidable foreign 
reserves with one of the highest reserve coverage ratios 
among Fitch -rated sovereigns. 
The Kingdom continues achieving advanced ranks in 
competitiveness indicators related to the financial 
market in 2023 
The Kingdom of Saudi Arabia has continued its progress in 
the competitiveness indicators related to the financial 
market to achieve the third position among the most 
competitive countries on the G20 nations' level, 
according to the IMD World Competitiveness Yearbook for
2023. The Kingdom advanced seven ranks, compared to 
its standing in 2022 The Kingdom ranked first in the 
Corporate Boards index among G20 nations, ranked 
second in capital markets councils index, stock market
capitalization 
index 
(as 
a 
percentage 
of 
GDP),
shareholders