The Capital Market Authority (CMA) of the Kingdom of Saudi Arabia has opened the capital market to all categories of foreign investors, enabling them to invest directly, starting February 1, 2026.
This follows the CMA Board’s approval of a new regulatory framework that allows non-resident foreign investors to invest directly in the Main Market. Accordingly, the capital market, across all its segments, 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 the Main Market, thereby supporting investment inflows and enhancing market liquidity.
The amendments abolished the concept of the Qualified Foreign Investor (QFI) in the Main Market, allowing all categories of foreign investors to access the market without qualification requirements. They also eliminated the regulatory framework governing swap agreements, which previously allowed non-resident foreign investors to gain only the economic benefits of listed securities, while now enabling direct investment in Main Market shares.
International investors’ ownership in the capital market exceeded $157.4 billion (SAR 590 billion) by the end of the third quarter of 2025, while international investments in the Main Market reached approximately $138.4 billion (SAR 519 billion) during the same period. This represents growth compared to the end of 2024, when foreign ownership stood at $132.7 billion (SAR 498 billion). The approved amendments are expected to further attract international investment inflows.
In July 2025, the CMA approved measures to simplify procedures for opening and operating investment accounts for selected investor categories, including natural foreign investors residing in a Gulf Cooperation Council (GCC) country or those who had previously resided in the Kingdom or any GCC country. This step served as an interim phase ahead of the latest decision, aimed at boosting confidence in the Main Market and supporting the local economy.
The amendments align with the CMA’s gradual approach to market liberalization, building on earlier phases and paving the way for additional steps to further open the capital market and position it as a global investment destination capable of attracting larger foreign capital flows.
In October 2025, the CMA published 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), as well as on the CMA’s website.
