Tadawul Opens to Foreign Investors Under 2026 Rules

Foreign investors will gain broader direct access to the Saudi stock exchange (Tadawul) starting 1 February 2026, under an updated market access framework that opens the door to all categories of investors, including non-residents, for the first time.

Under the new rules, the Qualified Foreign Investor (QFI) framework has been abolished, removing minimum asset thresholds and qualification requirements. All foreign institutional and individual investors, including non-resident natural persons, can now open trading accounts and invest directly in listed equities. Transactions must still be routed through licensed Saudi intermediaries, meaning local brokerage firms.

Direct access covers equities and convertible debt instruments listed on the Main Market. However, ownership caps remain in place: a single non-resident foreign investor may hold no more than 10% of any listed company, while aggregate foreign ownership is capped at 49%. Foreign investors residing in the Kingdom are exempt from the 10% individual limit but still fall within the 49% aggregate cap. Foreign strategic investors are exempt from the standard 10% ceiling, and the caps do not apply to foreign issuers cross-listed on Tadawul.

What comes next

The Capital Market Authority is reviewing foreign ownership limits during 2026 and is considering raising or eliminating the 49% aggregate cap, possibly in phases. External analysts estimate that lifting that cap could attract roughly USD 3.4 billion to USD 10.2 billion in new passive, index-tracking inflows, with some projections pointing to figures around USD 10 billion.

For residents and expats following the market, the changes lower long-standing barriers to entry and could deepen liquidity over time. Still, the 10% and 49% caps remain legally in force for now, and no formal decision has yet been taken to lift them.

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