Become an Investor

Documents Required

Saudi / GCC nationals and Saudi Arabian residents meeting the above criteria will need to provide identification documents to access the depository and settlement system. The identification documents required are:

Individuals

• For Saudis and GCC nationals: a copy of the identification card or family card.
• For non-GCC nationals: a copy of a valid residency license card (Iqama) and the passport.

Companies

• A copy of the commercial register.
• A copy of the company’s by-laws or articles of association, its annexes, and any amendment thereof.
• A copy of the board of directors’ resolution approving the opening of an Investment Portfolio for the company and granting the power to those who will sign on behalf of the company.
• Copies of the identification cards of members of the board of directors of the listed joint stock company.

Authorized Persons

• Copies of the commercial register, license and letter of engagement in business submitted to Saudi Exchange.

Charitable, Social Associations and Institutions

• A copy of both license and by-laws of charitable and social associations and institutions.
• A copy of the resolution of the relevant public entity approving the investment.
• A copy of the resolution of the charitable or social association or institution appointing the person who manages the Investment Portfolio and the Cash Account.
• A copy of the identification card of the person appointed to manage the Investment Portfolio and Cash Account.
• A copy of the Authority’s letter of approval issued for the charitable and social institutions and associations.

Endowment

• A copy of both the title deeds of endowment and appointment of trustee.
• A copy of the identification card of the trustee of the endowment.

Mutual Funds

• A copy of the license issued to establish the mutual fund.
• A letter from the manager of the mutual fund stating the name of the person authorized to manage the Investment Portfolio of the fund.
• A copy of the identification card of the person appointed to manage the Investment Portfolio of the fund.

Public Institutions or Government Funds

• A copy of the statute or by-laws of the public institution or government fund.
• A copy of the resolution issued by the public institution or government fund stating the name of the person authorized to manage its Investment Portfolio.
• A copy of the identification card of Saudis and GCC nationals or copy of residence permit (Iqama) and the passport of the non-GCC nationals authorized to manage the Investment Portfolio and Cash Account of the public institution or government fund.
• A copy of the Authority’s letter of approval issued for the public institution or government fund.

Additional Requirements For Nomu – Parallel Market

The Saudi Exchange’s Nomu – Parallel Market is an alternative platform for companies to go public featuring lighter listing requirements. As a result, investment in the market is restricted to Qualified Investors who meet at least one of the following criterias:

1. Capital Market Institutions trading on their own account.

2. Clients of a person authorized by the Authority to conduct managing activities provided that this Authorized Person has been appointed as an investment manager on terms which enable him/her to make decisions concerning the acceptance of an offer and investment in Nomu - Parallel Market on the client’s behalf without obtaining prior approval from the client.

3. The Government of the Kingdom, any government body, any supranational authority recognized by the Authority or the Exchange, and any other stock exchange recognized by the Authority or Securities Depository Center Company (“Edaa”)

4. Government-owned companies either directly or through a portfolio managed by a person authorized to carry out managing activities.

5. Companies and funds established in a GCC member state.

6. Investment Funds.

7. Non-resident foreigners permitted to invest in the Parallel Market and who meet the requirements stipulated in the Guidance Note for the investment of Non-Resident Foreigners in the Parallel Market.

8. Qualified foreign financial institutions.

9. Any other legal persons allowed to open an investment account in the Kingdom and an account at Securities Depository Center Company (“Edaa”).

10. Natural persons allowed to open an investment account in the Kingdom and an account at Securities Depository Center Company (“Edaa”), and fulfill any of the following criterias:

• Has conducted transactions in security markets of not less than 40 million Saudi Riyals in total, and not less than ten transactions in each quarter during the last twelve months.
• His/Her net assets are not less than 5 million Saudi Riyals.
• Works or has worked for at least three years in the financial sector.
• Holds the General Securities Qualification Certificate which is recognized by the Authority "CME-1".
• Holds a professional certificate that is related to securities business and accredited by an internationally recognized entity.

11. Any other persons prescribed by the Authority.

Additional Requirements For Swap Agreements

Authorized Persons (APs) must submit the following documents to the Capital Market Authority (CMA) for approval before entering into swap agreements:

• A copy of the swap standard agreement to be signed, and evidence of its adherence to the conditions and requirements of the swap agreement.
• Declaration from the AP ensuring the enforcement and performance of all the conditions and requirements of the swap agreement.
• Any other document that might be requested by the CMA.

Additional Requirements For The Derivatives Market

The launch of the Saudi Exchange’s Derivatives Market was a key milestone in the Financial Sector Development Program (FSDP).

Before opening a derivatives account, investors should be aware of the risks and returns associated with trading derivatives. For more information, you can visit our Knowledge Center page.

To trade, the investor should open an account through a broker who is a Derivatives member of the Exchange. For more information, please visit our Member Directory.
If the investor has an existing equities trading account, they may need to sign an additional agreement with their broker to trade derivatives.
Additional eligibility requirements apply to investors looking to trade derivatives as follows:

• Institutions
  All institutional and corporate clients as well as Individual DPMs.
• Individual DPMs
  Saudi individual investment account in which the manager (Authorized Person) makes the buy/sell decisions for its client without referring to the account owner (based on to the agreed terms between them
• Level 1 Individuals
  Individual Qualified Client is a natural person who fulfills any of the following criterias:
  • Conducted transactions not less than SAR 40m, and not less than 10 transactions in each quarter during the last 12 months.
  • Has an average portfolio size of SAR 5m for the preceding 12 months.
  • Worked for at least 3 years in financial sectors in a job related to securities’ investments.
  • Hold General Securities Qualification Certificate which is recognized by the Authority.
  • Hold professional certificate that is related to securities business and accredited by an internationally recognized entity.
• Level 2 Individual
  Clients who are not under any of the other categories defined above.

For more information on how to trade in the derivatives market, please call us at +966 92000 1919. You may also contact us via email at csc@saudiexchange.sa.