​The Capital Market Authority (CMA) clarifies that it has come to its attention that authorized persons (financial institutions licensed by CMA) are opening investment accounts for their clients for the purpose of trading in the Saudi capital market. After carefully studying the matter, a CMA board resolution was issued which states that it is mandatory for the Authorized Person to open an investment account in the name of the client, and not in the name of the Gulf broker or any other party.

CMA further states that Authorized Persons should abide by CMA's Board Resolution issued on September 24, 2007, which specifies that all citizens of Gulf Cooperation Council (GCC) countries (natural or legal) and Saudi citizens are treated equally in the matter of purchasing or trading of listed stocks in the market, as mentioned on the websites of CMA and the Saudi Stock Exchange (Tadawul).

CMA would also like to explain that a non-resident foreign investor may invest in listed shares in the market via swap agreements, investment funds, or according to Rules for Qualified Foreign Financial Institutions Investment in Listed Shares.