Saudi Market Opens to All Foreign Investors in 2026

Saudi Arabia's Capital Market Authority has approved a wide-ranging package of reforms that will open the Kingdom's Main Market directly to all foreign investors — both individuals and institutions — from 1 February 2026, ending the long-standing Qualified Foreign Investor (QFI) framework.

Under the new rules, the previous QFI qualification requirements and the swap agreements used by non-resident foreign investors will be abolished in a single regulatory action. Foreign investors will instead gain direct access, while non-resident investors (excluding foreign strategic investors) remain subject to a 10% maximum ownership per issuer and a 49% aggregate foreign ownership cap

In a notable step, the reforms allow non-Saudi investors, including non-residents, to jointly own up to 49% of shares or convertible debt in Saudi-listed companies that own real estate assets in Makkah and Madinah, within existing aggregate caps. A new Offshore Securities Business License framework will also let licensed foreign institutions manage funds and invest in Saudi securities through offshore or regional headquarters structures without QFI conditions.

What it means for Gulf residents

Amendments to Investment Account Instructions in October 2025 now permit individual foreign investors residing in GCC countries to invest directly in Main Market (TASI) listed shares through licensed Saudi intermediaries. Investors who previously lived in Saudi Arabia or other GCC states may continue operating their accounts and investing in TASI shares even after their residency ends.

The changes align with the CMA's 2024–2026 strategic plan, which aims to raise international investor ownership across equities, sukuk, debt instruments, and funds, while strengthening transparency, disclosure, governance, and safeguards against fraud, insider trading, and market manipulation. For residents and expats across Riyadh and Jeddah, the reforms make participating in the Saudi capital market simpler and more accessible than before.

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