Saudi Arabia opens capital market fully to foreign investors from February 2026

Saudi Arabia will open its capital market fully to foreign investors from February 1, 2026, marking one of the most significant liberalisation steps in the Kingdom’s financial market history.

The move removes long-standing restrictions on non-resident participation and is designed to deepen liquidity and attract additional international capital.

The announcement was made by the Capital Market Authority (CMA) following approval by the CMA Board of a new regulatory framework governing foreign investment in the Main Market.

Saudi Arabia opens doors to foreign investors

Under the new framework, the Saudi capital market will be accessible to all categories of foreign investors for direct participation across all its segments, effective from February 1, 2026.

The approved amendments are intended to expand and diversify the investor base permitted to invest in the Main Market, supporting investment inflows and enhancing overall market liquidity.

As part of the reforms, the CMA has eliminated the concept of the Qualified Foreign Investor (QFI) in the Main Market.

This change allows all categories of foreign investors to access the market without the need to meet specific qualification requirements.

The amendments also remove the regulatory framework governing swap agreements, which previously allowed non-resident foreign investors to gain only economic exposure to listed securities. Under the new rules, foreign investors will be permitted to invest directly in shares listed on the Main Market.

Foreign ownership already exceeds $157bn

International investors’ ownership in the Saudi capital market exceeded SR590bn ($157.3bn) by the end of the third quarter of 2025. During the same period, international investments in the Main Market reached approximately SR519bn ($138.4bn).

This represents growth compared to international ownership at the end of 2024, which stood at SR498bn ($132.8bn).

The CMA said the approved amendments are expected to contribute to attracting additional international investments going forward.

The CMA noted that the latest decision builds on earlier steps taken to open the market gradually. In July 2025, the regulator approved measures to simplify procedures for opening and operating investment accounts for certain categories of investors.

These included natural foreign investors residing in one of the Gulf Cooperation Council (GCC) countries, as well as individuals who had previously resided in the Kingdom or in any GCC country. The CMA described this as an interim phase aimed at increasing confidence among Main Market participants and supporting the local economy.

Saudi Arabia an international market

According to the CMA, the approved amendments align with its long-term strategy to position the Saudi capital market as an international marketplace capable of attracting greater flows of foreign capital.

The regulator said the changes build on previous phases of market opening and pave the way for further complementary steps designed to enhance the Kingdom’s appeal to global investors.