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A typical stock exchange is a form of exchange which caters services to traders and stock brokers who buy or sell bonds, stocks, and any other securities. The stock exchange also facilitates the issuing and redemption of financial instruments, securities and capital events which include the payment of dividends and income. It is no hidden fact that all the people who leave their home country and make their way to the Kingdom of Saudi Arabia, aim to find better employment and improve their living standards. Expats are employed in every possible industry and section of the jobs market in the Kingdom. Much like employment some people also tend to invest in stocks through the stock exchange. Expats living in Saudi Arabia often ask this question that are non-Saudis or expats allowed to invest in the Saudi Stock Exchange, which is also called Tadawul. Today we have brought you the detailed process in which non-Saudis can also invest in the Stock Exchange in Saudi Arabia
A non-Saudi resident, to invest in the Stock Exchange, must have a legal and valid residence permit with the investor profession, which is basic. Secondly, the expat must also have an active bank account in a local Saudi bank. If you need any assistance in opening a bank account in any of the banks in Saudi Arabia, follow this link “Banks in Saudi Arabia”. To invest in the stock exchange one must have a Trading Investment Portfolio and both are prerequisites to obtain one. This applies to all nationalities regardless of being only non-Saudi. The documents that you will need to open an Investment Portfolio and to establish an Investor Account are;
1-Complete and accurate application form to open investor account in Saudi Stock Market. In this, you need to accurately state your nationality and your date of birth. You also need to give a valid and active bank account number and the address of your permanent residence.
2-The information above needs to be attested by the Operations Manager of the respective bank, or any of his delegates who have been authorized to attest the documents. The signature is also required of the Manager or delegate.
3-With the above documents, you also need to provide a photocopy of the holder’s passport and their residence permit.
4-A letter of introduction also has to be provided by your employer and it has to signed and attested by them as well. After that, it needs to be attested by the Chamber of Commerce of the city where your office is registered. Read this link for further details “Important Tips for Attestation from Chamber of Commerce”
5-All the information on the applicants will be verified and will go through the process through the Depository Center of Tadawul on the Saudi Stock Exchange.
There are however certain terms and conditions to the application process which may not permit some people to invest in the Stock Exchange in Saudi Arabia. Firstly, the rules stated above are only for non-Saudi people. Secondly, the Investment Portfolio is subject to the validity of the residence permit of the investor. As and when the residence permit expires, the portfolio will be suspended and can only be reopened once the residence permit of the Investor has been extended or legally renewed.
Source: Saudi Stock Market