The the Capital Market Authority has announced the opening of the capital market to all categories of foreign investors and will allow them to invest directly in it starting February 1, 2026, This follows the Authority’s Board of Directors" approval of a draft regulatory framework to allow non-resident foreign investors to invest directly in the main market, making the capital market—in all its segments—available to various categories of investors from around the world for direct participation.
The The approved amendments aim to expand and diversify the base of investors eligible to invest in the main market, thereby supporting investment inflows and enhancing liquidity.
The approved amendments have eliminated the concept of a "qualified foreign investor" in the main market, allowing all categories of foreign investors to access the market without having to meet qualification requirements, In addition, the regulatory framework for swap agreements—which had been used as an option to enable non-resident foreign investors to obtain only the economic benefits of listed securities—has been abolished, and direct investment in shares listed on the main market is now permitted.
590 billion riyals in foreign investor holdings
By the end of the third quarter of 2025, international investors" holdings in the financial market had reached more than 590 billion riyals, while international investments in the main market totaled approximately 519 billion riyals during the same period—an increase from their holdings at the end of 2024, which stood at 498 billion riyals at that time. The approved amendments are expected to help attract further international investment.
It is worth noting that in July 2025, the Capital Market Authority approved measures to streamline the procedures for opening and operating investment accounts for a number of investor categories, including foreign individual investors residing in one of the Gulf Cooperation Council (GCC) countries, or those who have previously resided in the Kingdom or in a GCC country. This was considered a preliminary step toward the decision announced today, which aims to increase confidence among participants in the primary market and strengthen support for the local economy.
These approved amendments are in line with the Authority’s gradual approach to opening the market following a number of previous phases, which will be followed by complementary phases to further open the financial market and transform it into an international market that attracts more foreign capital.
In October 2025, the Capital Market Authority published “draft regulatory framework to allow non-resident foreign investors to invest directly in the main market” on the unified electronic platform for soliciting feedback from the public and government agencies affiliated with the National Center for Competitiveness (Istithla) and on the Authority’s website.
