Riyadh, Saudi Arabia — The Capital Market Authority (CMA) has approved the regulatory framework for offering Saudi Depository Receipts (DRs) in exchange for shares listed in foreign markets. The Saudi Depository Receipts approval takes effect immediately upon publication.
According to the CMA, this framework introduces a new financial instrument for Saudi Arabia’s capital market. It allows foreign companies to register and offer DRs that correspond to shares already listed on international exchanges.
This decision aims to deepen the Saudi capital market, boost its role in capital formation, and increase market attractiveness. It also provides more listing options for companies and expands investment opportunities for investors.
Approval Expands Market Options
Foreign firms can now list DRs in Saudi Arabia after obtaining regulatory approval. The offering requirements for DRs will mirror existing rules for share offerings under the Rules on the Offer of Securities and Continuing Obligations.
Issuers of Saudi DRs must meet the same continuing obligations as foreign companies listed on Tadawul, with some limited exceptions.
Importantly, this move builds on previous regulatory changes. In 2020, the CMA allowed Saudi-listed firms to issue DRs abroad, supporting Vision 2030 and attracting international investors. Now, foreign firms can access the Saudi market through DRs for the first time.
The regulatory framework is based on a public consultation process. The CMA collected feedback over a 30-day period from private sector stakeholders, government bodies, and the public.
Additionally, Tadawul and the Securities Depository Center (Edaa) have implemented new market rules to support the DR framework.
The Saudi Standard’s View: DRs Strengthen Saudi Market’s Global Links
The approval of Saudi Depository Receipts reinforces Saudi Arabia’s position as an emerging global financial hub. Allowing foreign companies to list DRs locally boosts market depth, expands product diversity, and improves liquidity.
This reform aligns with Vision 2030 goals to modernize capital markets and attract global investors. Moreover, it signals the Kingdom’s growing confidence in competing for international capital.
Saudi regulators continue to remove barriers and introduce new financial instruments. The latest DR framework reflects the Kingdom’s determination to create an investor-friendly, diversified financial system.
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