Saudi capital market opens to all foreign investors as of Feb. 1

Logo of Capital Market Authority (CMA)

The Capital Market Authority (CMA) announced the opening of the Saudi capital market to all categories of foreign investors, enabling them to invest directly therein as of Feb. 1.

The step came following the CMA board's approval of the regulatory framework allowing non-resident foreign investors to invest directly in the Main Market (TASI).

Accordingly, the Saudi capital market, across all its sectors, will be accessible to various categories of investors from around the world for direct participation.

The approved amendments aim to expand and diversify the base of investors permitted to invest in Tadawul, thereby supporting investment inflows and enhancing market liquidity, the authority said in a statement.

Under the amendments, the concept of the Qualified Foreign Investor (QFI) was eliminated in TASI, thereby allowing all categories of foreign investors to access the market without the need to meet qualification requirements.

The regulatory framework governing swap agreements, which are used as an option to enable non-resident foreign investors to obtain economic benefits only from listed securities, has been scrapped, together with the allowance of direct investment in TASI-listed shares.

International investors' ownership in the Saudi capital market exceeded SAR 590 billion by the end of Q3 2025, while their TASI investments reached approximately SAR 519 billion during the same period, compared to SAR 498 billion at 2024-end. The approved amendments are expected to contribute to attracting additional foreign investments.

In July 2025, 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 or in any GCC country.

This step represented an interim phase leading up to the decision announced today, with the aim of increasing confidence among market players and supporting the local economy, the statement added.

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 Saudi Arabia as an international marketplace capable of attracting greater flows of foreign capital, the authority further indicated.

The CMA published in October 2025 the “Draft Regulatory Framework for Allowing Non-Resident Foreign Investors to Directly Invest in the Main Market" on the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform) and the CMA's website for those interested, concerned, and participating in the capital market to express their views on it.

To view the regulations in accordance with this decision, you may click on the following links:

Amended Rules for Foreign Investment in Securities

Amended Investment Accounts Instructions

Amended Instructions on Issuing Depositary Receipts Out of the Kingdom

Amended Implementing Regulation of the Companies Law for Listed Joint Stock Companies

Amended Glossary of Defined Terms Used in The Regulations and Rules of The Capital Market Authority

To view the FAQs on the Rules for Foreign Investment in Securities, please click (here)​