Legal developments

6,000 Ministry of Justice employees receive training

In a drive to train 6,000 Ministry of Justice (MoJ) employees, which began at the start of 2015, the MoJ announced that 175 employees received training this month in international judicial practices. The training was aimed at developing skills and increasing the productivity of staff to meet deadlines.

Arab News, 24 June 2015

Finance and capital market developments

HSBC among the first QFIs licensed to trade on the Tadwul

As we have reported in previous updates, the Capital Market Authority (CMA) has previously issued draft rules and announcements related to the liberalization of foreign investment in listed shares on Saudi Arabia’s sole stock exchange, the Tadawul, for certain foreign investors.

On 6 May 2015, the CMA issued the final rules for Qualified Foreign Investors (QFIs) to invest in listed shares on the Tadawul. The final rules came into effect on 15 June 2015.

Following the effectiveness of the rules, HSBC Holdings was among the first foreign investors to obtain qualification as a QFI and authorization to trade on the Tadawul. Adel Al-Ghamdi, the CMA Chief Executive, also revealed that the CMA is currently processing QFI applications from six large foreign institutional investors.

Arab News, 16 June 2015

USD 300 million murabaha facility for ICD

The Islamic Corporation for the Development of the Private Sector (ICD) obtained a 13-month murabahafinancing facility in the amount of USD 300 million, its largest financing facility to date. The facility was provided by the Dubai Islamic Bank PJSC, First Gulf Bank PJSC, Mizuho Bank (Malaysia) Berhad and Mizuho Bank Nederland N.V.

Saudi Gazette, 23 June 2015

NCB brings in SAR 1 billion through Sukuk offering

Saudi Arabia’s largest bank, National Commercial Bank (NCB), announced the sale of Islamic bonds (sukuk) this month, which has been a trend amongst Saudi Arabian banks recently. The sale brought in SAR 1 billion to NCB’s capital reserves.

Arab News, 23 June 2015