CMA Opens Saudi Main Market to All Foreign Investors

The Capital Market Authority has approved a package of regulatory enhancements aimed at developing Saudi markets, with changes covering investment funds, foreign investor access, licensing of capital market institutions, and public offerings of asset-backed instruments.

Among the most significant changes, all categories of foreign investors will be able to invest directly in shares listed on the Main Market of the Saudi Exchange from 1 February 2026, subject to existing foreign ownership limits. Amendments to the Rules for Foreign Investment in Securities in January 2026 removed the Qualified Foreign Investor (QFI) regime, and the framework for swap agreements — which previously gave non-resident investors economic exposure without direct share ownership — has been discontinued.

Foreign individual investors residing in a GCC country, or who previously resided in Saudi Arabia or any GCC country, are now expressly allowed to open investment accounts and trade directly in Main Market securities. The Securities Depository Center Company (Edaa) has updated its procedures to match, including securities borrowing and lending regulations.

On investment funds, the reforms permit the public offering of financing investment funds and allow them to list on both the Main Market and the Parallel Market to widen the range of products and grow assets under management. Investment restrictions for public funds in private debt instruments have been removed, and an over-the-counter settlement service for debt instruments is now available.

The authority also introduced enhancements to capital requirements for capital market institutions. Minimum capital for custody activity was reduced from SAR 50 million to SAR 20 million; arranging activity involving client funds in securities-based crowdfunding is set at SAR 2 million; dealing as principal, underwriting and margin transactions are grouped at SAR 20 million; and dealing as agent is set at SAR 10 million.

For residents and expats interested in investing, the changes mean easier and more direct access to Saudi shares and a broader set of investment products, reflecting continued efforts to develop the local financial market.

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