Saudi Arabia will open its capital market to global investors, boosting liquidity and international participation/Representative Image
Saudi Arabia is opening its doors to the world. Starting February 1, global investors can directly tap into the Kingdom’s capital market, a bold move designed to boost liquidity and attract international capital. The Capital Market Authority (CMA) is removing old restrictions that once limited access to only a select few, signalling a new era for Saudi finance.
A new era for foreign investment in Saudi Capital Market
Under the revised rules, all categories of foreign investors will now be able to invest directly across all segments of the Saudi capital market. The CMA has eliminated the “Qualified Foreign Investor” designation, which previously required international investors to have direct and consistent access to the Saudi market to participate.The amendments also remove the framework governing swap agreements. Previously, non-resident investors could only gain economic exposure to listed securities, rather than owning shares outright. With the changes, direct share ownership in the Main Market is now permitted, marking a significant step toward full market integration with global investors.
CMA’s gradual reforms
The February opening follows a series of measured steps by the CMA over the past year to broaden market access. In July 2025, the authority simplified procedures for certain foreign investors, including individuals residing in Gulf Cooperation Council (GCC) countries and former Saudi or GCC residents, to open and operate investment accounts. This earlier step served as an interim phase, designed to build confidence and prepare the market for full-scale international participation.In October 2025, the CMA released a draft regulatory framework outlining the new rules for non-resident investors on its Unified Electronic Platform for public and government consultation. These moves reflect a gradual, phased approach to transforming Saudi Arabia’s capital market into an attractive global investment destination.
Saudi market investment impact
The CMA expects the reforms to expand and diversify the investor base, attract additional international inflows, and enhance overall market liquidity. International investors already held approximately 590 billion riyals ($157 billion) in the Saudi capital market by the end of the third quarter of 2025. Foreign investments in the Main Market alone reached about 519 billion riyals, up from 498 billion riyals at the end of 2024.The Kingdom has been actively seeking foreign participation as part of its broader economic plan to reduce reliance on oil. Initiatives such as establishing exchange-traded funds with partners in Japan and Hong Kong, and opening listed real estate firms in Mecca and Medina to foreign investors, have laid the groundwork for these reforms.
Positioning Saudi Arabia as global market
These amendments are a major milestone in Saudi Arabia’s vision to position its capital market as an international hub capable of attracting substantial foreign capital. By removing barriers to direct investment and streamlining access, the CMA aims to increase confidence in the Main Market while supporting local economic growth. Analysts expect the move to strengthen the Kingdom’s appeal to institutional investors and portfolio managers worldwide.With the new regulations in place from February, Saudi Arabia takes a decisive step toward becoming a fully integrated, globally accessible market, inviting investors to play a more direct role in the Kingdom’s financial future. Go to Source
