Saudi Arabia
JordanAl Madani & Co. Law Firm & Legal Consultants
The Investment Account and Its Key Features: A Comprehensive Guide for Potential Investors
The Investment Account has emerged as one of the most significant investment products recently introduced by the Kingdom. It provides individual investors with an organized and secure platform to invest their money in shares of companies listed on the financial market. This investment option has gained considerable attention from Saudi investors, courtesy of its numerous benefits.
In this article, we aim to highlight the key features of the Investment Account:
- The account can be opened in Saudi Riyals, US Dollars, or other major currencies.
- It offers diversified investment options such as stocks, investment funds, bonds, and financial derivatives.
- The account enables investments in both local and global financial markets.
- Electronic trading services for easy buying and selling of securities are readily available.
- Advisory services and investment portfolio management features enhance the investment experience.
- Financing or borrowing options are available to increase purchasing power.
- The account offers tax benefits such as exemption from capital gains tax.
- Easy fund transfers to other banking accounts are facilitated.
- The account ensures the protection of investor funds and information through a secure and regulated financial market system.
Opening an Investment Account in the Kingdom is a significant step towards growing your savings and achieving financial goals. It provides an ideal pathway to venture into the world of investment in a professional and organized manner.
Moreover, it’s worth mentioning that the Investment Account in the Kingdom comes with several significant tax advantages:
- Capital gains resulting from the sale of stocks, funds, and other securities are not subject to income tax.
- Cash dividend distributions on investments in stocks and funds are not subject to income tax.
- Interests on bonds, Sukuk, and Murabaha revenues are not subject to income tax for non-Saudi residents.
- Profits from foreign currency buy and sell transactions are not subject to income tax.
- There is a 5% tax withholding exemption on corporate profit distributions for non-Saudi resident investors.
- A 15% capital return tax withholding exemption is available for non-Saudi resident investors.
- Value-added tax (VAT) exemption on fees and commissions related to Investment Account services.
Finally, we’d like to point out that the Investment Account, launched by the General Investment Authority in the Kingdom, has become a significant step towards stimulating investment activity in Saudi stocks and attracting more individual investors. The Investment Account has successfully drawn a large segment of investors due to its multiple advantages. It’s expected that the Investment Account will continue to encourage savings and investment in Saudi stocks across all segments of society.
