Saudi Arabia Extends Financial Markets to Foreign Investors Boosting Inflows from Next Month

Saudi Arabia announces the opening of the capital market to all categories of foreign investors enabling them to invest directly from1 February 2026.

The Saudi Capital Market Authority (CMA) has announced that Saudi Arabia plans to open its financial markets to all foreign investors from February 1, 2026, to attract more money from abroad. It will also allow people from overseas to directly invest in the market for the first time, as Saudi Arabia tries to expand its investor base.

It is important to note that in July 2025, the CMA approved measures to simplify the procedures for opening and operating investment accounts for certain categories of investors. Whereas the approved amendments allows individual foreign investors who have previously lived in Saudi Arabia or other countries Gulf countries to continue investing in listed equities on Tadawul even after their residency expires.

The amendments approved by the Capital Markets Authority rejects the concept of the Qualified Foreign Investor and a rule that only permitted foreign investors with direct and reliable access to the Saudi capital market, with the intention of increasing confidence among Main Market participants and strengthening the local economy.

Saudi Arabia, which is progressing successfully of an economic plan to lessen its reliance on oil, establishes exchange-traded funds with Asian partners in Japan and Hong Kong and has been attempting to draw in foreign investors. Without altering the limitations on direct land ownership, regulators last year also made it possible for foreigners to purchase listed companies that own real estate in Mecca and Medina.

According to LSEG statistics, the Saudi benchmark index has dropped 1.9% so far this year and 12.8% last year. Following the report that the CMA may lower a 49% restriction on foreign ownership of listed companies, Saudi equities surged in September. This might help restore interest in the largest stock market in the Arab world.