Saudi Arabia to open capital market to all foreign investors

Saudi Arabia will open its capital market to foreign investors starting next month, marking the latest push in a series of initiatives to drive investment inflows and enhance market liquidity. 

Starting February 1, access to the kingdom’s capital market will be accorded to all categories of foreign investors, enabling them to invest directly into Tadawul’s main market, according to Saudi’s financial market regulator. 

The amendments will eliminate the concept of qualified foreign investors in the main market. Prior to the approved regulations, only a qualified foreign investor with assets worth 1,875,000,000 Saudi riyals, equivalent or more was permitted to open an investment account. 

The amendment will also abolish swap agreements, which were previously used as an option to allow non-resident foreign investors to merely gain economic benefits of listed securities. Instead, it will grant them the ability to directly invest in listed shares on the main market. 

Ownership of foreign investors in the capital market exceeded 590 billion Saudi riyals by the end of Q3 2025, while overseas investments in the main market reached approximately 519 billion Saudi riyals during the same period.

The latest amendment builds on previous measures such as the initiative to simplify investment accounts for foreign investors announced this July. Individual foreign investors residing in any GCC country were permitted to open an account and invest in listed shares. 

In a first, investors who had moved to their home country but had previously resided in Saudi Arabia or other GCC country were allowed to continue investing in listed shares on the main market.  

"These approved amendments align with the CMA's gradual approach to opening the market, building on previous phases and paving the way for complementary steps aimed at further opening the capital market," the regulator said.

The Saudi Tadawul market, which opened up to foreign investors in 2015, operates two primary equity market segments - the main market and the Nomu - parallel market.

Earlier this year, the capital market authority allowed foreigners to invest in listed companies owning real estate in the twin holy cities of Makkah and Madinah.