The Capital Market Authority (CMA) announces the opening of the capital market to all categories of foreign investors and enabling them to invest directly therein as of 1 February 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 approved amendments eliminated the concept of the Qualified Foreign Investor (QFI) in the Main Market, thereby allowing all categories of foreign investors to access the market without the need to meet qualification requirements. It also eliminated the regulatory framework governing swap agreements, which were used as an option to enable non-resident foreign investors to obtain economic benefits only from listed securities, and the allowance of 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, representing 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.
It is worth noting that in July 2025, the CMA approved measures to simplify the 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 those who had previously resided in the Kingdom or in any GCC country. This step represents 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.
These 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. The goal is to position the market 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 the CMA's website.
To view the regulations in accordance with this decision, you may click on the following links:
Amended Rules for Foreign Investment in Securities
Amended Investment Accounts Instructions
Amended INSTRUCTIONS ON ISSUING DEPOSITARY RECEIPTS OUT OF THE KINGDOM
Amended Implementing Regulation of the Companies Law for Listed Joint Stock Companies
Amended Glossary of Defined Terms Used in The Regulations and Rules of The Capital Market Authority
To view the FAQs on the Rules for Foreign Investment in Securities, please click (here)
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