SWAP Agreement

Kingdom of Saudi Arabia is inching toward opening up its equity market to direct foreign investment. At the moment this investment access is in the form of SWAP arrangements.

For foreign investors seeking an exposure to Saudi market we at Alistithmar Capital provide a SWAP arrangement. Under the SWAP agreement we will buy shares of companies listed on Tadawul on behalf and as specified by our foreign investor.

We will sell the shares upon request of our client or at the end of the specified period, and return the money to their designated account.  The advantage of investing In the Kingdom of Saudi Arabia from a fiscal standpoint is that there is no tax on capital Gains, and a reduced tax on cash distribution.