Saudis seek feedback on plan to open stock market to foreigners

Saudi Arabian regulators have launched a public consultation into their plan to eliminate the concept of “qualified foreign investor” in an attempt to open the domestic stock market further to foreign capital.

Alamy via Reuters | A man walks at the Saudi Stock Exchange in Riyadh. Foreign investment in the Saudi main market has increased by almost five times since 2015

• Aim is to broaden investor base

• Targets “qualified foreign investor” concept

• CMA wants to boost market liquidity

“The draft aims to broaden and diversify the base of investors eligible to participate in the main market, while also attracting additional investments and increasing market liquidity,” the Capital Markets Authority said in a press release.

The proposed changes would allow all categories of foreign investor to invest directly in the market without meeting qualification requirements or relying on swap agreements.

It expands on reforms introduced in July that simplified the investment process for residents of Gulf Cooperation Council countries.

“This draft aligns with the CMA’s gradual approach to opening the market,” the release said, “building on previous phases and paving the way for complementary steps aimed at further liberalising the capital market.

“The goal is to position it as an international marketplace capable of attracting greater flows of foreign capital.”

Foreign investment in the Saudi main market has increased by almost five times since 2015, exceeding SAR528 billion ($105 billion) by the end of the first half of 2025. The CMA has repeatedly stated its intention to increase foreign inflows.

The feedback period will run until October 31.

Saudi Arabia’s All-Share Index (Tadawul) is down 4.2 percent this year to date. The Dubai index is up 14 percent and Kuwait’s has risen 19 percent.

The Tadawul gained 0.6 percent in 2024.

By Edmund Bower

October 2, 2025, 10:54 AM