Saudi Arabia Fully Opens Capital Market to Foreign Investors

# Saudi Arabia Opens Capital Market to All Foreign Investors

In a significant move to attract global investment, the Saudi Arabian authorities have announced that the kingdom's capital market will be fully opened to all categories of foreign investors starting from February 1, 2026. This decision, revealed by the Saudi Capital Market Authority (CMA) on Tuesday, January 6, marks a major step in the country's efforts to liberalize its financial markets and enhance their international appeal.

## Major Reforms Announced

The CMA stated that the key amendment approved is the removal of the concept of 'Qualified Foreign Investors' from the Saudi Main Market. This means that all foreign investors, regardless of their classification or specific qualifications, will now be allowed to directly invest in the market without meeting any particular eligibility criteria.

Additionally, the regulatory framework for swap agreements has been abolished. Previously, these agreements served as a primary investment vehicle for non-resident foreign investors, enabling them to gain economic benefits from listed securities without directly holding them. The elimination of this framework is expected to simplify and streamline foreign investment processes.

## Strategic Objectives Behind the Reforms

The CMA emphasized that these reforms aim to broaden and diversify the investor base in the Saudi Main Market. By doing so, the authority intends to support increased investment inflows, enhance market liquidity, and ultimately establish the Saudi capital market as an internationally attractive destination for investors.

## Current Investment Landscape

Data released by the CMA highlights the growing appeal of Saudi Arabia's capital market to international investors. As of the end of the third quarter of 2025, foreign investors held securities worth over SAR 5,900 billion (approximately USD 1,570 billion at an exchange rate of 1 USD = 3.75 SAR). During the same period, the value of foreign investments in the Saudi Main Market amounted to approximately SAR 5,190 billion.

## Implications for Global Investors

This move is expected to further integrate Saudi Arabia's capital market into the global financial system. It not only reflects the kingdom's commitment to economic reforms under Vision 2030 but also signals its ambition to become a key player in the international investment landscape.