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The Capital Market Authority announced on January 6 that it had approved amendments to the Rules for Foreign Investment in Securities. Effective February 1, 2026, all categories of foreign investors will gain direct access to securities listed on the Main Market of the Saudi Exchange. The CMA said the new framework removes prior restrictions on non-resident participation and allows investors to buy and hold shares without intermediary structures.
According to the CMA announcement, the Qualified Foreign Investor regime has been eliminated along with its eligibility requirements. The authority also abolished the swap-agreement framework that had restricted many investors to indirect exposure only. These changes establish a single direct participation model for foreign entities and individuals alike.
The Capital Market Authority stated that the amendments seek to expand the investor base, deepen liquidity and draw additional international capital. Saudi Vision 2030 program documents frame the reform as part of the Financial Sector Development Program, which targets raising the ratio of capital market assets to GDP. The program has guided successive regulatory adjustments to support broader economic diversification goals.
CMA documentation on the former regime set a minimum assets-under-management threshold of SAR 1.875 billion for Qualified Foreign Investors. Analyses circulated by law firms following the announcement noted that removal of this bar will allow mid-sized fund managers and specialised institutions to participate directly for the first time. Saudi Exchange reports recorded foreign ownership of free-float shares at 17 percent by the end of 2024 ahead of further liberalisation.
The authority has pursued incremental opening of the market since first introducing the Qualified Foreign Investor framework over a decade earlier. Related adjustments issued in 2025 simplified investment account procedures for certain foreign nationals with GCC residency ties, according to CMA updates. These preparatory steps paved the way for the comprehensive direct-access regime now scheduled.
Saudi Exchange data placed total foreign holding value above SAR 437 billion by July 2026 after the rules took effect. The exchange’s 2025 annual statistical report highlighted expanded market capitalisation supported by new listings, including a higher share of micro and small enterprises. The Capital Market Authority indicated it would continue to assess the reforms’ impact on trading volumes and overall market efficiency.
