Capital market institutions will soon be able to offer securities services outside Saudi Arabia and manage investments in local assets, under a new offshore securities business license currently up for public consultation. The draft framework (pdf), published by the Capital Market Authority (CMA), is open for feedback until 28 June and is part of ongoing efforts to position the Kingdom as a global financial hub.

A streamlined track: The framework outlines capital requirements, registration conditions, and financial adequacy standards, while also defining restrictions on how licenses holders are expected to operate.

What’s on the table: License holders will be able to conduct securities activities offshore, manage funds investing in Saudi securities, and offer services to international clients and a defined category of local investors.

Who’s eligible? Both local and international firms can apply, provided they have a head office in the Kingdom, and operate through a regional headquarters licensed by the Investment Ministry.

Why it matters: The new license is set to shake up domestic capital markets by allowing local and international firms to operate beyond the Kingdom’s borders. Previously, capital market players were mostly confined to domestic activities and faced stricter regulatory requirements. This license, tied to the Investment Ministry’s regional headquarters program, cuts through red tape with more flexible capital and operational requirements.

For investors, it could mean more diverse offerings, greater access to regional and international markets, and a boost in the volume and variety of assets under management.

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