Saudi Stock Market Fully Opens to Global Investors: A Major Milestone for Foreign Direct Access
In a transformative step for Saudi Arabia’s financial landscape, the Capital Market Authority (CMA) has officially opened the Kingdom’s capital market—including the flagship Tadawul Main Market—to investors from around the world starting February 1, 2026. This landmark decision removes longstanding barriers, allowing direct participation by all categories of foreign investors without prior qualification hurdles.
The CMA’s board-approved regulatory amendments seek to broaden and diversify the investor base in the Main Market, driving greater capital inflows and improving overall market liquidity. As part of the changes, the authority has eliminated the Qualified Foreign Investor (QFI) designation, which previously restricted access to only those meeting specific criteria. Additionally, the regulatory framework for swap agreements—a mechanism that previously allowed non-residents to gain economic exposure to listed securities without direct ownership—has been discontinued.
According to the CMA’s statement, these reforms build on earlier progressive measures. In July 2025, the authority simplified account-opening procedures for certain groups, such as natural foreign investors residing in Gulf Cooperation Council (GCC) countries or those with prior residency in the Kingdom or GCC region. This served as a foundational phase to build market confidence and pave the way for broader global access.
Foreign investment in Saudi equities has already shown strong momentum. By the end of the third quarter of 2025, international investors held more than SR590 billion (approximately $157.32 billion) across the capital market, with holdings in the Main Market reaching around SR519 billion—reflecting a solid 4% annual increase. The new rules are expected to accelerate this trend by making entry simpler and more appealing to a wider range of participants, including institutional funds, retail investors, and others previously excluded.
This development aligns closely with Saudi Arabia’s Vision 2030 economic transformation plan, which aims to reduce the Kingdom’s long-standing reliance on oil revenues by fostering non-oil sectors, promoting private sector growth, and attracting substantial foreign direct investment (FDI). Over recent years, the government has pursued aggressive reforms to modernize the financial ecosystem, including the launch of exchange-traded funds (ETFs) in partnership with Asian markets like Japan and Hong Kong, streamlined regulations, and incentives for international capital.
The opening of the Main Market to unrestricted direct foreign investment marks one of the most significant liberalizations in Tadawul’s history—the largest stock exchange in the Arab world and a key component of the MENA region’s financial infrastructure. Analysts anticipate this could lead to increased trading volumes, improved price discovery, and greater integration with global markets, benefiting both local companies seeking diverse funding and international portfolios looking for exposure to a high-growth emerging economy.
As Saudi Arabia continues its ambitious diversification journey, this policy shift underscores the Kingdom’s commitment to creating an open, competitive, and investor-friendly environment—positioning Tadawul as a more prominent player on the global stage starting in early 2026.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.