Saudi Arabia, home to the Arabian Gulf’s biggest stock market, will allow foreign investors to subscribe to initial public offerings in the kingdom from January.
The Capital Market Authority has approved regulations on book-building in IPOs that include qualified foreign investors, which will be implemented on January 1, according to a statement posted on the regulator’s website on Thursday.
Financial advisers “may apply these instructions on any offering before that date” with approval from the issuer, according to the statement.
The announcement comes less than a month before rules to ease restrictions on who can qualify as a foreign investor come into force.
Saudi Arabia is opening one of the world’s most closed stock markets to increased international participation after oil prices halved in the past two years.
The Tadawul Stock Exchange started allowing limited foreign direct investment in June last year under rules that govern which entities can invest and how much of each company and the market they can own.