Saudi Market Opens to All Foreign Investors in 2026

Saudi Living reports that the Saudi Capital Market Authority will open the Main Market to all categories of foreign investors for direct investment, effective 1 February 2026. The step comes through amendments to the Rules for Foreign Investment in Securities that eliminate the Qualified Foreign Investor (QFI) regime and remove investor category-based eligibility thresholds.

Under the new rules, foreign investors may invest directly in listed shares, subject to existing foreign ownership limits. The 2026 reforms also abolished the regulatory framework for equity swap agreements, which had previously been used to gain economic exposure to Saudi-listed shares without direct market access.

Why it matters

These changes complete a key phase of the Capital Market Authority Strategic Plan 2024–2026, which aims to grow the number of listings, assets under management, and foreign ownership. By the end of 2025, assets under management in Saudi capital markets reached about SAR 1,244 billion, up from SAR 612 billion in 2020, while the number of listed companies rose to 392 from 207. Foreign investor ownership in the Main Market reached roughly SAR 417 billion, compared with SAR 208 billion in 2020.

The Authority also introduced several other reforms during 2025. In July 2025, regulatory enhancements for investment funds took effect on 21 July, amending the Investment Funds Regulations and the Real Estate Investment Funds Regulations to further develop the fund industry. That same month, a Close-out Netting and related Collateral Arrangements Regulation entered into force for derivatives, strengthening legal certainty for derivatives and collateral in the local market.

The broader 2024–2026 plan continues to focus on modifying ownership restrictions, enhancing corporate governance regulations, and expanding the range of capital market products to deepen and strengthen the market. Fees for issuers whose securities are registered and listed are set by the Authority under implementing regulations, with schedules determined administratively rather than fixed amounts.

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