The Capital Market Authority (CMA) announced the opening of the capital market to all categories of foreign investors and enabling them to invest directly therein as of February 1, 2026, following the CMA board’s approval of the regulatory framework allowing non-resident foreign investors to invest directly in the Main Market.
Accordingly, the capital market, across all its segments, will be accessible to various categories of investors from around the world for direct participation.
The approved amendments aim to expand and diversify the base of investors permitted to invest in the Main Market, thereby supporting investment inflows and enhancing market liquidity.
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.
International investors’ ownership in the capital market exceeded SAR 590 billion by the end of the third quarter of 2025, while international investments in the Main Market reached approximately SAR 519 billion during the same period, marking growth compared to their ownership at the end of 2024, which stood at SAR 498 billion. The approved amendments are expected to contribute to attracting additional international investments.
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.
