Saudi Arabia's Capital Market Authority (CMA) has announced a landmark decision to fully open its capital market to all foreign investors starting February 1, 2026. This strategic move will grant international investors direct access to the Main Market, removing previous restrictions and qualification requirements. The initiative is poised to significantly enhance the market's global competitiveness and attract a broader spectrum of international capital.
A Strategic Shift in Market Access
The new regulatory framework fundamentally alters the landscape for foreign participation by eliminating the Qualified Foreign Investor (QFI) program. Previously, only institutions meeting specific criteria could invest directly, but this significant barrier to entry will now be removed entirely. This change democratizes access, allowing a wider range of global investors to engage with one of the region's largest economies.
In a parallel adjustment, the CMA has also abolished the regulatory framework governing swap agreements for foreign investors. These instruments previously allowed non-residents to gain economic exposure to listed securities without direct ownership of the underlying assets. The shift to direct investment streamlines the process and provides investors with full ownership rights, fostering deeper market integration.
Bolstering Market Liquidity and Growth
This policy reform is designed to significantly boost investment inflows and enhance market liquidity, building on an already strong foundation. By the end of the third quarter of 2025, international investor ownership in the capital market had already surpassed $157.2 billion. This figure represents a notable increase from the $132.7 billion recorded at the end of 2024, indicating growing foreign confidence.
The Main Market alone accounted for approximately $157.2 billion of this international investment during the same period. The CMA anticipates that the new, more accessible framework will accelerate this growth trajectory by attracting additional international capital. This influx is expected to deepen the market's capital pool and support the valuation of listed companies.
A Phased and Deliberate Approach
The decision is the culmination of a gradual and carefully managed market-opening strategy undertaken by the CMA. An important preliminary step was taken in July 2025, when the authority simplified account opening procedures for certain investor categories. This included foreign nationals residing in Gulf Cooperation Council (GCC) countries, setting the stage for broader liberalization.
To ensure transparency and stakeholder alignment, the CMA published the draft regulatory framework for public consultation in October 2025. This allowed market participants and government entities to provide feedback on the proposed changes through a unified electronic platform. The final regulations reflect a considered approach that incorporates industry input to foster a stable and attractive investment environment.
Ultimately, the full opening of the Saudi capital market marks a pivotal moment in the Kingdom's economic transformation journey. This move aligns with national strategic goals to diversify the economy and establish the market as a leading international financial hub. By creating a more open and efficient investment ecosystem, Saudi Arabia is positioning itself to attract greater global capital flows and support long-term sustainable growth.