Saudi Arabia will open its stock market to all foreign investors, scrapping remaining restrictions in its latest move to boost capital inflows into the Gulf kingdom.
The changes abolish the concept of the “qualified foreign investor” in the main market, removing the need for overseas investors to meet minimum qualification thresholds. Under current rules, foreign entities must, among other conditions, have at least 1.875 billion Saudi riyals ($500 million) in assets under management, while most others can only trade Saudi shares through swap agreements.
The regulations governing swap agreements were also scrapped, according to the CMA.
The changes are intended to “expand and diversify the base of those permitted to invest in the Main Market,” the regulator said, thereby supporting investment inflows and enhancing market liquidity.
According to the CMA, international investors held more than 590 billion riyals ($157.3 billion) of Saudi assets by the end of the third quarter of 2025, while their holdings in the main market reached about 519 billion riyals over the same period, an annual increase of 4 percent.
The decision is the latest in a series of market reforms as Riyadh’s need for foreign inflows grows more urgent. High government spending combined with weaker oil revenues has pushed the budget deeper into deficit, raising concerns that key investment projects could slow.
Authorities are also trying to revive sentiment in the equity market. The benchmark Saudi Tadawul All Share Index lost around 1,546 points, or nearly 13 percent, in 2025, marking its largest percentage decline since 2015 and steepest point drop since 2008.
Last July, the CMA approved measures to simplify the process of opening and operating investment accounts for certain foreign investors, including those residing in Gulf Cooperation Council (GCC) countries, as well as those who had previously lived in Saudi Arabia or any other GCC state.
The CMA described last year’s reforms as an interim step toward the Jan. 6 decision, aimed at building confidence among main-market participants and bolstering the domestic economy.
Saudi Arabia is now more than halfway through Vision 2030, its national strategy to reduce dependence on oil. As part of that plan, the kingdom has been courting foreign investors in non-oil sectors such as tourism, technology, entertainment, and renewable energy, while using its oil wealth to bankroll massive “giga-projects” like NEOM, the planned $500 billion futuristic desert city.
