RIYADH — Saudi Arabia will fully open its capital market to foreign investors starting February 1, 2026, after authorities removed all remaining investment restrictions, according to an announcement by the Capital Market Authority (CMA).
The move allows foreign investors of all types to invest directly in Saudi-listed shares without meeting prior eligibility conditions. It marks the first time the Kingdom’s capital market will be accessible to international investors on the same terms as local participants.
Removal of Previous Restrictions
The CMA said on January 6 that it has ended the Qualified Foreign Investor (QFI) system, which previously limited access to large institutions that met strict requirements, including a minimum level of assets under management.
Under the updated rules:
- Foreign investors no longer need QFI status
- Swap agreements used by non-resident investors have been discontinued
- Direct ownership of shares is now permitted across the Tadawul Main Market
The authority said the changes apply to all market segments and investor categories.
What the Change Means for the Market
The CMA stated that opening the market fully will broaden the investor base and support trading activity. Officials noted that the decision follows several years of step-by-step regulatory updates aimed at aligning Saudi Arabia’s capital market with international practices.
The reform also supports the country’s wider economic plans under Vision 2030, which focuses on reducing reliance on oil revenue and expanding private sector participation.
Foreign Investment Growth So Far
Foreign ownership in Saudi-listed equities has already increased in recent years. By the end of the third quarter of 2025, international holdings exceeded SAR 590 billion, compared with SAR 498 billion at the end of 2024, according to official data.
Market activity also reacted positively when earlier reports suggested further easing of investment rules. On September 24, 2024, the Saudi stock market recorded its largest single-day gain in more than five years.
Gradual Opening Before Full Access
Before this announcement, Saudi Arabia had already taken intermediate steps. In July 2025, residents of Gulf Cooperation Council countries were granted direct access to the Saudi stock market.
The CMA described that phase as a transition toward the full opening now scheduled for 2026, allowing regulators to monitor market behavior while expanding participation.
Broader Economic Context
Saudi Arabia’s capital market reforms are part of wider efforts to grow non-oil sectors. While oil still contributes a large share of government income, activity outside the energy sector has continued to expand.
According to the International Monetary Fund, non-oil economic activity in Saudi Arabia grew by 4.3 percent in 2024. Sectors such as technology, tourism, and financial services have shown steady growth.
The Public Investment Fund also plays a role by supporting new industries and encouraging private investment through co-funding and partnerships.
Regional and Global Impact
With the removal of all foreign ownership limits, Saudi Arabia becomes one of the most accessible large markets in the Middle East for international investors. Analysts expect the change to attract more institutional and long-term capital, given the size of the market and the range of listed companies.
Saudi Arabia is a G20 economy with a population of about 37 million, and its stock market is the largest in the region by value.
What Comes Next
From February 2026, foreign investors will be able to trade Saudi shares without special approval or alternative structures. Market officials said the focus will remain on maintaining orderly trading, transparency, and regulatory oversight.
The CMA said it will continue to monitor market conditions and update regulations where needed to support investor confidence and market stability.
As the Kingdom approaches the later stages of Vision 2030, the full opening of its capital market signals a clear policy direction toward wider global participation in Saudi Arabia’s financial system.
Note: This report is based on official statements from the Capital Market Authority and publicly available financial data.
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I’m Soha Owais, a law graduate with an LLB (Hons), blending my legal background with a passion for storytelling. As an author and writer at Saudiscoop.com, I craft engaging narratives that connect with both local and international audiences, bringing a fresh and informed perspective to the stories that matter.
