Saudi Market Opens to All Foreign Investors

Saudi Arabia opened its capital markets to all categories of foreign investors on 1 February 2026, ending a system that had required overseas institutions to meet a high qualification threshold before trading directly on the local market.

The reform was introduced by the Capital Market Authority, which abolished the Qualified Foreign Investor (QFI) framework in January 2026 and replaced it with direct market access. Under the previous rules, a foreign institution generally needed around USD 500 million (about SAR 1.875 billion) in assets under management to qualify for direct participation in the Saudi Main Market.

With that barrier removed, foreign investors can now access the Main Market directly, without the former asset-size requirement. The change is designed to broaden the pool of international participants and simplify entry into one of the region's largest equity markets.

Some limits remain in place, however. Foreign ownership caps still apply in most listed companies, with a ceiling of 10% for each individual non-resident foreign investor and an aggregate foreign ownership limit of 49% in most cases.

For residents and expats following Saudi markets, the reform signals a more open investment environment while preserving guardrails on how much of any listed company can be held by foreign shareholders. As international investors weigh opportunities across the Gulf, easier access to the Saudi Main Market is expected to keep the Kingdom firmly on the radar of global capital.

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