Saudi Market Opens to All Foreign Investors in 2026

The Capital Market Authority (CMA) has announced new measures to open the Saudi capital market more widely to global institutional investors, with major changes taking effect on 1 February 2026. From that date, all categories of foreign investors — including large international institutions — will be able to invest directly in shares listed on the Main Market.

Under the changes, the Qualified Foreign Investor (QFI) regime will be abolished and the swap agreements framework discontinued. This means global institutional investors will no longer need to obtain QFI status or rely on derivative structures to participate in the market. Access will instead run through the Saudi Exchange (Tadawul) via licensed Authorized Persons — the brokerage firms operating in the Kingdom.

To invest, a foreign institutional investor will need to open an investment account with a CMA-licensed Authorized Person and complete know-your-customer (KYC) and anti-money laundering (AML) checks. Account opening and trading are handled through the broker's digital platforms and Tadawul's systems.

Some ownership limits remain under the Foreign Investment in Securities Rules. A non-resident foreign investor (excluding foreign strategic investors) may not own 10% or more of a listed issuer, while aggregate foreign ownership in any listed company may not exceed 49%. Foreign investors resident in Saudi Arabia are exempt from the 10% individual cap but remain subject to the 49% aggregate limit.

Why it matters

The CMA has been gradually relaxing foreign access rules since 2025, moving from limited categories to full direct access for all foreign investor types in 2026. Additional measures target funds and institutional capital, including new "Simplified Investment Fund Instructions" effective 2026 that create a streamlined regime for funds raising capital exclusively from institutional clients, with greater contractual flexibility and reduced compliance burdens. Together, the steps aim to attract international capital and deepen the Kingdom's financial market.

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