Saudi Arabia opens capital market to all foreign investors
06 January 2026 Saudi Arabia
Image: Mohammed/stock.adobe.com
The Capital Market Authority (CMA) has confirmed the opening of Saudi Arabia鈥檚 capital market to all categories of foreign investors.
As a result, foreign investors will be able to invest directly as of 1 February 2026, following approval of the regulatory framework allowing non-resident foreign investors to invest directly in the Main Market.
Across all its segments, the capital market will be accessible to various categories of investors from around the world for direct participation.
The amendments aim to expand and diversify the base of investors permitted to invest in the Main Market, thereby supporting investment inflows and enhancing market liquidity.
Further, the amendments eliminated the concept of the Qualified Foreign Investor (QFI) in the Main Market, thereby allowing all categories of foreign investors to access the market without the need to meet qualification requirements.
It also eliminated the regulatory framework governing swap agreements, which were used as an option to enable non-resident foreign investors to obtain economic benefits only from listed securities, and the allowance of direct investment in shares listed on the Main Market.
International investors' ownership in the capital market exceeded 590 billion Saudi riyal (US$157.3 billion) by the end of the third quarter of 2025, while international investments in the main market reached approximately SAR519 billion during the same period 鈥� up from SAR498 billion at the end of 2024.
The approved amendments are expected to contribute to attracting additional international investments, says the CMA.
In July 2025, the CMA approved measures to simplify the procedures for opening and operating investment accounts for certain categories of investors.
These included natural foreign investors residing in one of the Gulf Cooperation Council (GCC) countries, as well as those who had previously resided in the Kingdom of Saudi Arabia or in any GCC country.
This step represents an interim phase leading up to this recent decision, with the aim of increasing confidence among participants in the Main Market and supporting the local economy.
These approved amendments align with the CMA's gradual approach to opening the market, building on previous phases, and paving the way for complementary steps aimed at further opening the capital market.
The goal is to position the market as an international marketplace capable of attracting greater flows of foreign capital.
As a result, foreign investors will be able to invest directly as of 1 February 2026, following approval of the regulatory framework allowing non-resident foreign investors to invest directly in the Main Market.
Across all its segments, the capital market will be accessible to various categories of investors from around the world for direct participation.
The amendments aim to expand and diversify the base of investors permitted to invest in the Main Market, thereby supporting investment inflows and enhancing market liquidity.
Further, the amendments eliminated the concept of the Qualified Foreign Investor (QFI) in the Main Market, thereby allowing all categories of foreign investors to access the market without the need to meet qualification requirements.
It also eliminated the regulatory framework governing swap agreements, which were used as an option to enable non-resident foreign investors to obtain economic benefits only from listed securities, and the allowance of direct investment in shares listed on the Main Market.
International investors' ownership in the capital market exceeded 590 billion Saudi riyal (US$157.3 billion) by the end of the third quarter of 2025, while international investments in the main market reached approximately SAR519 billion during the same period 鈥� up from SAR498 billion at the end of 2024.
The approved amendments are expected to contribute to attracting additional international investments, says the CMA.
In July 2025, the CMA approved measures to simplify the procedures for opening and operating investment accounts for certain categories of investors.
These included natural foreign investors residing in one of the Gulf Cooperation Council (GCC) countries, as well as those who had previously resided in the Kingdom of Saudi Arabia or in any GCC country.
This step represents an interim phase leading up to this recent decision, with the aim of increasing confidence among participants in the Main Market and supporting the local economy.
These approved amendments align with the CMA's gradual approach to opening the market, building on previous phases, and paving the way for complementary steps aimed at further opening the capital market.
The goal is to position the market as an international marketplace capable of attracting greater flows of foreign capital.
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