On 26 June 2019, the "Instructions for Foreign Strategic Investors' Ownership in Listed Companies" (the FSI Instructions) became effective. The FSI Instructions removed the existing limit on foreign ownership of a Saudi-listed company to foreign strategic investors. Under the new regulations, foreign ownership of stocks will no longer be limited to qualified foreign investors (QFIs) (i.e. financial firms with at least US$500 million in assets under management). Also, the previous minimum or maximum ownership limits for strategic investors have been abolished. Holding periods of 24 months continue to apply. For the purposes of the OECD FDI Regulatory Restrictiveness Index, it is assumed to have been fully liberalised and, thus, no longer scored.
"Summary:
The decision included: Allowing the Capital Market Authority to open the way for foreign financial institutions to buy and sell shares listed in the Saudi financial market, according to the rules it sets in this regard. [...]" (Council of Ministers' Resolution No. (388) dated 24/9/1435H [21/7/2014])
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"Article 1: Preliminary
a. The purpose of these Rules is to set out the procedures, requirements and conditions for qualifying foreign investors to invest in listed securities, and to specify their obligations and the obligations of authorised persons in this regard.
b. These Rules shall be read in conjunction with and in addition to the Capital Market Law and its Implementing Regulations, including, the Rules of Offering Securities and Continuing Obligations, the Market Conduct Regulations, the Authorised Persons Regulations, the Merger and Acquisition Regulations and the Anti-Money Laundering and Counter-Terrorist Financing Rules.
c. Without prejudice to paragraph (e) of Article (15) of these Rules, these Rules shall not apply to Citizens of the Cooperation Council for the Arab States of the Gulf.
d. Qualified foreign investors ("QFIs") are entitled to exercise all rights related to listed securities owned by them, including trading in rights issues.
[...]
PART 3: CONTINIOUING OBLIGATIONS
Article 13: Compliance with laws and regulations
A QFI must at all times comply with the applicable provisions stated in the Capital Market Law and
its Implementing Regulations, as well as the rules and the regulations of the Exchange and other
relevant laws.
Article 14: Investment limits
a. Investments of QFIs shall be subject to the following limitations:
1) Each QFI, may not own 10% or more of the shares of any issuer whose shares are listed or convertible debt instrument of the issuer.
2) The maximum proportion of the shares of any issuer whose shares are listed or convertible debt instrument of the issuer that may be owned by all foreign investors (in all categories, whether residents or non-residents, except the foreign strategic investors pursuant to the Instructions for the Foreign Strategic Investors' Ownership in Listed Companies) in aggregate is 49%. [....] (Rules for Qualified Foreign Financial Institutions Investment in Listed Securities Issued by the Board of the Capital Market Authority Pursuant to its Resolution Number 1-42-2015,dated 15/7/1436H [4/5/2015]).
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"Part 2: Categories of Non-resident foreigners whom are allowed to invest in the Parallel Market
The following categories of foreigners who do not reside in the kingdom are allowed to invest in the Parallel Market:
1. Qualified foreign investor according to the Rules for Qualified Foreign Financial Institutions Investment in Listed Securities.
2. Ultimate beneficiary in Swap agreement with an authorized person.
3. Legal person allowed to open an investment account in the Kingdom and an account at the Depositary Center and are licensed or incorporated in a jurisdiction that applies regulatory and monitoring standards equivalent to those of the Authority or acceptable to it in accordance with the list of jurisdictions issued by the Authority as required in sub-paragraph (2), and sub-paragraph (3) of paragraph (a) of article 6 of the Rules for Qualified Foreign Financial Institutions Investment in Listed Securities.
[...]
Part 3: Investment restrictions
The investments of non-resident foreigners of all categories in the Parallel Market are subject to the following limitations:
1. Each non-resident foreign investor may not own 10% or more of the shares of any issuer whose shares are listed or convertible debt instrument of the issuer.
2. The maximum proportion of the shares of any issuer whose shares are listed or convertible debt instrument of the issuer that may be owned by all foreign investors (in all categories, whether residents or non-residents, except the foreign strategic investors pursuant to the Instructions for the Foreign Strategic Investors' Ownership in Listed Companies) in aggregate is 49%. [...]" (Guidance Note for the investment of NonResident Foreigners in the Parallel Market Issued by the Board of the Capital Market Authority Pursuant to Resolution Number 4-59-7102 Dated 72/01/1439H [16/10/2017]) 
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"Part 1: Preliminary
a) The purpose of these Instructions is to set out the provisions, requirements and conditions necessary for the Foreign Strategic Investors ownership of Strategic Shareholdings in listed companies, and determine their obligations and the obligations of the Authorised Persons in this regard.
b) These Instructions shall have no prejudice to the provisions of the Capital Market Law and its Implementing Regulations, especially the Rules on the Offer of Securities and Continuing Obligations and the Merger and Acquisition Regulations, and the other related laws.
c) The Foreign Strategic Investors are entitled to exercise all rights related to the shares of the listed companies they own, including trading in rights issue.
d) The Rules for Qualified Foreign Financial Institutions Investment in Listed Securities shall not apply to the Foreign Strategic Investors
[...]
Part 2: Definitions [...]
Foreign Strategic Investor: a foreign legal entity that aims to own a Strategic Shareholding in listed companies.
Strategic Shareholding: the direct ownership percentage in the listed company's shares, and through which the aim is to contribute in promoting the financial or operational performance of the listed company
[...]
Part 6: Investment Limits
a) The investments of the Foreign Strategic Investor shall be subject to the following limitations:
1. The limitations set forth in the Articles of Association of the listed companies or any instructions issued by the regulatory and supervisory authorities which such companies are subject to.
2. Other legislative limitations on foreigner's ownership in joint stock companies.
3. The Foreign Strategic Investor, may not dispose of any of the shares it owned in accordance with these Instructions within a period of two years after the date of ownership of such shares. [...] (INSTRUCTIONS FOR THE FOREIGN STRATEGIC INVESTORS OWNERSHIP IN LISTED COMPANIES Issued by the Board of the Capital Market Authority Pursuant to its Resolution Number 3-65-2019, Dated 14/10/1440H [17/6/2019])
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"[...]The aforementioned Board Decision further included amending subparagraph (a\2) of Article (14) of the Rules for Qualified Foreign Financial Institutions Investment in Listed Securities and paragraph (2) of Part (3) of the Guidance Note for the investment of Non-Resident Foreigners in the Parallel Market by adding the following statement: "except the foreign strategic investors pursuant to the Instructions for the Foreign Strategic Investors' Ownership in Listed Companies" to be read as follows: "The maximum proportion of the shares of any issuer whose shares are listed or convertible debt instrument of the issuer that may be owned by all foreign investors (in all categories, whether residents or non-residents, except the foreign strategic investors pursuant to the Instructions for the Foreign Strategic Investors' Ownership in Listed Companies) in aggregate is 49%. [...]" (CMA Announcement on the Adoption of the Instructions for the Foreign Strategic Investors' Ownership in Listed Companies, 26/06/2019)
Council of Ministers' Resolution No. (388) dated 24/9/1435H [21/7/2014]
Rules for Qualified Foreign Financial Institutions Investment in Listed Securities Issued by the Board of the Capital Market Authority Pursuant to its Resolution Number 1-42-2015,dated 15/7/1436H [4/5/2015])
Guidance Note for the investment of NonResident Foreigners in the Parallel Market Issued by the Board of the Capital Market Authority Pursuant to Resolution Number 4-59-7102 Dated 72/01/1439H [16/10/2017]
INSTRUCTIONS FOR THE FOREIGN STRATEGIC INVESTORS OWNERSHIP IN LISTED COMPANIES Issued by the Board of the Capital Market Authority Pursuant to its Resolution Number 3-65-2019, Dated 14/10/1440H [17/6/2019]
CMA Announcement on the Adoption of the Instructions for the Foreign Strategic Investors' Ownership in Listed Companies, 26/06/2019
[<a href="http://ncar.gov.sa/Documents/Details?Id=I5nxkvo6lyo%2FD7ZwJdfSbw%3D%3D">Resolution</a>],[<a href="https://cma.org.sa/en/RulesRegulations/Regulations/Documents/QFI_18_en.pdf">Rules</a>],[<a href="https://cma.org.sa/en/RulesRegulations/Regulations/Documents/QFI_PM_en.pdf">Guidance</a>],[<a href="https://cma.org.sa/en/RulesRegulations/Regulations/Documents/Instructions-FSI-Ownership-Listed-Companies-en.pdf">Instruction</a>],[<a href="https://cma.org.sa/en/Market/NEWS/Pages/CMA_N_2589.aspx">Announcement</a>]