Saudi Arabia is set to open its stock market to foreign investors starting February 1, 2026, marking a significant milestone in the Kingdom’s economic diversification efforts.
The Capital Market Authority has approved sweeping regulatory changes that will grant international investors direct access to the Saudi capital market across all segments.
The new amendments represent a major shift in the Kingdom’s investment landscape. The CMA has eliminated the Qualified Foreign Investor framework, which previously required foreign entities to meet specific qualification criteria before accessing the Main Market.
Under the new regulations, all categories of foreign investors can now participate directly without navigating complex qualification requirements.
Additionally, the regulatory framework governing swap agreements has been abolished. These agreements had been used as an alternative mechanism allowing non-resident foreign investors to obtain only economic benefits from listed securities, rather than direct ownership.
The new system enables straightforward investment in shares listed on the Main Market.
According to the CMA, these changes aim to expand and diversify the investor base while supporting investment inflows and enhancing market liquidity.
The amendments are expected to boost confidence among market participants and provide additional support to the local economy.
The move comes at a time when international investment in Saudi Arabia’s capital market has already reached substantial levels.
By the end of the third quarter of 2025, international investors’ ownership in the capital market had exceeded SR590 billion (approximately $157.32 billion), demonstrating strong existing interest in Saudi assets.
This decision builds on earlier reforms introduced in July, when the CMA approved measures to simplify procedures for opening and operating investment accounts for specific investor categories.
These included foreign nationals residing in Gulf Cooperation Council countries and those who had previously lived in Saudi Arabia or other GCC nations.
The liberalization of the stock market aligns with Saudi Arabia’s Vision 2030, the Kingdom’s ambitious economic blueprint aimed at reducing dependence on oil revenues.
Now more than halfway through implementing this transformation plan, Saudi Arabia has actively pursued various strategies to attract foreign capital and expertise.
Recent efforts have included establishing exchange-traded funds with Asian partners in Japan and Hong Kong, creating additional pathways for international investment in Saudi assets.
The Kingdom has also been working to enhance its reputation as an attractive destination for global investors through regulatory improvements and infrastructure development.
The CMA characterized this latest move as the culmination of an interim phase designed to gradually increase foreign participation while building confidence in the Main Market.
By removing barriers to entry and simplifying investment procedures, Saudi Arabia positions itself to compete more effectively with other emerging markets for international capital.
This opening of the Saudi stock market represents one of the most significant financial reforms in the Kingdom’s recent history, potentially transforming its capital markets landscape and accelerating its economic diversification goals.
Source: https://www.arabnews.com/node/2628461/business-economy
