Historically, foreign ownership of shares in companies listed in the kingdom has traditionally been a highly regulated regime. Until the introduction of QFI rules in 2015, foreign investors could not invest directly in Tadawul-listed securities, but only invest indirectly through swap agreements with persons authorized by the CMA. A currency swap is an agreement to exchange fixed capital and interest in one currency for fixed capital and interest in another currency. It is important to understand that the fixed interest rate offered by the bank evolves independently of the base rate. If the mood of the market changes, the price on which you set your swap also changes. Swaps can be used to hedge risks of different types, including interest rate risk and currency risk. Interest rate swaps and money swaps are the two most common types of swaps traded in the market. By entering into a swap, you pay the fixed rate for the duration of the swap, regardless of the base interest rate (or variable interest rate). The expansion of shareholding is part of the Kingdom`s ongoing efforts to open its capital markets to international investors and help reduce its dependence on oil revenues. The introduction of the FSI`s instructions is an important step towards consolidating Tadawul as the leading stock exchange in the MENA region and ensures that foreign direct investors who wish to invest in the region do not face excessive regulatory hurdlees.