CMA to reassess foreign ownership cap in 2026, says El-Kuwaiz

Mohammed El-Kuwaiz, Chairman of Capital Market Authority (CMA)

Mohammed El-Kuwaiz, Chairman of Capital Market Authority (CMA), said the abolition of the Qualified Foreign Investor (QFI) system will precede the adjustment of the current 49% foreign ownership limit, noting that these limits will be revisited next year.

Speaking at a panel discussion on the sidelines of the Future Investment Initiative (FII), EL-Kuwaiz explained that the move is part of the market regulator's approved plan.

A decision on lifting the foreign ownership cap or raising it gradually will depend on the results of a study, to be conducted.

The CMA has a clear and phased approach regarding the opening of the market to foreign investors; it also has a clear stance on abolishing the QFI system before reviewing foreign ownership limits, said the top official.

He indicated that the regulator is not eager to announce any decision before conducting a thorough analysis, emphasizing that the pace of regulatory liberalization is very clear. “In fact, when multiple initiatives are being implemented simultaneously, a key factor arises — the need to connect the dots and see the full picture,” said Elkuwaiz.

He pointed out that the biggest challenge facing companies wishing to relocate their headquarters to Saudi Arabia is not the foreign ownership cap, which can be addressed through the Strategic Foreign Investor Program allowing ownership beyond 49%, but rather when a founder or entrepreneur cannot become a shareholder because they are not classified as a qualified investor.

It is crucial to address this issue first, before tackling foreign ownership limits, he concluded.