Saudi Arabia Opens Capital Market to All Foreign Investors
The Saudi Capital Market Authority (CMA) announced on Tuesday that, starting February 1, the Saudi capital market will be available to all types of foreign investors. This is a significant move, as it marks the first time that international investors can directly participate in the market, aligning with Saudi Arabia’s goal to broaden its investor base.
The regulator explained that, “The approved amendment eliminates the concept of qualified foreign investor (QFI).” Essentially, now every category of foreign investor can access the market without needing to meet specific eligibility criteria.
This decision comes after the CMA Board approved a framework that facilitates non-residents’ access to key markets. The CMA stated that the initiative is aimed at “widening and diversifying the base of investors permitted in key markets, ultimately supporting investment inflows and boosting market liquidity.”
By the end of the third quarter of 2025, foreign ownership in capital markets had already exceeded 590 billion riyals (about $157.3 billion). Just a year earlier, ownership was around 498 billion riyals. This upward trend could be a good sign for future international investment, according to the CMA.
This move comes almost six months after Saudi Arabia opened its stock exchange to Gulf residents, who are now also able to invest directly in the main Tadawul market. In July, the CMA announced that residents from Gulf states could invest directly in Saudi’s Tadawul market to enhance its international presence.
Furthermore, the approved amendments will allow individual foreign investors who were previously residing in Saudi Arabia or other Gulf nations to continue investing in listed shares after their residency status changes. Until now, investments by Gulf residents in Saudi Arabia were mainly limited to bond markets and other derivative markets.
As part of its Vision 2030 initiative, Saudi Arabia is actively working on opening its economy to foreign investors. Launched in 2016, this program aims to diversify the economy beyond oil, support private sector expansion, enhance women’s participation in the workforce, and reduce unemployment. Heavy investments in infrastructure, real estate, and tourism are fundamental to fostering non-oil economic growth.
Recently, Saudi Arabia managed to raise $11.5 billion through dollar bond sales, illustrating ongoing economic diversification efforts. In the past years, the kingdom also rolled out new laws, including the Companies Law, to attract further foreign investments.
According to the International Monetary Fund, the kingdom’s economy is forecasted to grow by 4% this year, similar to last year’s projections. This growth is attributed to increased oil production and robust domestic demand stemming from ongoing reforms.
The CMA remarked that these recent measures aim to bolster confidence among participants in Saudi Arabia’s key markets and support the overall domestic economy. “These approved amendments align with our gradual approach to market opening,” stated the regulator, emphasizing the importance of positioning the market to attract more foreign capital.
Saudi Arabia is focused on revitalizing its $2.23 trillion stock market, with the CMA continuously updating regulations to make capital markets more appealing to both domestic and international investors.
Following reports about easing foreign ownership restrictions, the Saudi stock market soared by 5.1% on September 24—the highest increase in over five years—indicating growing interest and optimism regarding foreign investment opportunities.
