Saudi Arabia has taken a major step in accelerating the global integration of its financial markets, announcing that its capital market will be fully opened to all categories of foreign investors from February 1, 2026.
The landmark move, approved by the Capital Market Authority (CMA), allows non-resident foreign investors to invest directly in the Kingdom’s Main Market, significantly broadening access and reinforcing Saudi Arabia’s ambitions to position itself as a leading international investment hub.
The decision follows the CMA board’s approval of a comprehensive regulatory framework governing direct foreign participation, the Saudi Press Agency reported. With the new rules, all segments of the capital market will be accessible to a wide range of global investors, marking one of the most liberal openings of the Saudi market to date.
The amendments are aimed at expanding and diversifying the investor base, boosting foreign capital inflows and enhancing market liquidity, while aligning the Kingdom’s financial sector reforms with the broader objectives of Vision 2030.
QFI system scrapped
The amendments abolished the concept of the Qualified Foreign Investor (QFI) in the Main Market, allowing all categories of foreign investors to access the market without the need to meet qualification requirements. They also eliminated the regulatory framework governing swap agreements, which had been used as an option to enable non-resident foreign investors to obtain only the economic benefits of listed securities, while permitting direct investment in shares listed on the Main Market, the report said.
International investors’ ownership in the capital market exceeded SAR590 billion by the end of the third quarter of 2025, while international investments in the Main Market reached approximately SAR519 billion during the same period, marking growth compared to their ownership at the end of 2024, which stood at SAR498 billion. The approved amendments are expected to contribute to attracting additional international investments, it said.
In July 2025, the CMA approved measures to simplify the procedures for opening and operating investment accounts for certain categories of investors, including natural foreign investors residing in one of the Gulf Cooperation Council (GCC) countries, as well as those who had previously resided in the Kingdom or in any GCC country. This step represented an interim phase leading up to the decision announced today, with the aim of increasing confidence among participants in the Main Market and supporting the local economy.
The 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 and positioning it as an international marketplace capable of attracting greater flows of foreign capital.
The CMA published in October 2025 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 (Public Consultation Platform) and on the CMA’s website.
