Regulatory Alerts2026-01-06
Instructions on Issuing Depositary Receipts Out of the Kingdom
The Capital Market Authority of Saudi Arabia has issued these Instructions to establish the regulatory framework and requirements for issuing Depositary Receipts outside the Kingdom for domestically listed shares. The rules mandate prior Authority approval, define the specific obligations of issuers and depositary banks regarding account management, voting rights distribution, and simultaneous information disclosure, and cap aggregate foreign ownership at 49 percent. Furthermore, the Authority retains supervisory powers to verify compliance, prohibit share disposal by non-compliant depositary banks, and enforce the appointment of alternative custodians to safeguard market integrity.
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