Saudi Gazette report

RIYADH — The Capital Market Authority (CMA) announced the opening of Saudi Arabia’s capital market to all categories of foreign investors, allowing them to invest directly across all market segments starting Feb. 1, 2026.

The decision follows the CMA board’s approval of a new regulatory framework permitting non-resident foreign investors to invest directly in the Main Market, making the capital market accessible to a broad range of global investors.

The approved amendments aim to expand and diversify the investor base in the Main Market, support investment inflows and enhance market liquidity.

Under the new framework, the CMA has eliminated the concept of the Qualified Foreign Investor (QFI) in the Main Market, enabling all categories of foreign investors to access the market without the need to meet qualification requirements.

The amendments also abolished the regulatory framework governing swap agreements, which previously allowed non-resident foreign investors to gain only economic exposure to listed securities, and now permit direct share ownership in the Main Market.

International investors’ ownership in the Saudi capital market exceeded SR590 billion by the end of the third quarter of 2025.

Foreign investments in the Main Market reached about SR519 billion during the same period, up from SR498 billion at the end of 2024.

The CMA said the amendments are expected to attract additional international investment.

The authority noted that in July 2025 it approved measures to simplify procedures for opening and operating investment accounts for certain categories of investors, including foreign individuals residing in Gulf Cooperation Council countries and those who had previously lived in Saudi Arabia or other GCC states.

That step was described as an interim phase leading to the latest decision, aimed at boosting confidence in the Main Market and supporting the local economy.

The CMA said the amendments align with its gradual approach to opening the market, building on previous phases and paving the way for further steps to position the Saudi capital market as an international marketplace 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 and on the authority’s website.