Saudi Arabia opens stock market to foreigners to revive activity
Make us a preferred source
Make us a preferred source on Google
The news: Saudi Arabia will open its stock market to all foreign investors from 1 February 2026, removing restrictions that required them to meet specific qualifications, including a minimum of USD500 million ($742 million) in assets under management.
The Saudi Capital Market Authority said in a statement the approved amendments eliminate the concept of the Qualified Foreign Investor, allowing all categories of foreign investors to access the main market without needing to meet qualification requirements.
The CMA said the changes are expected to “contribute to attracting additional international investments” and support market liquidity.
The numbers: Foreign ownership in the USD2.3 trillion market stood at over 590 billion riyals (USD157.3 billion) at the end of September, with around 88% of that in the main index, according to Bloomberg.
The context: The move is the latest in a series of market reforms aimed at reviving a market where the Tadawul All Share Index fell 12.8% last year.
JP Morgan said the immediate impact of the rule change may be limited, as nearly all institutional investors already have access to the market.
It added that raising the current 49% cap on foreign ownership of listed firms could positively affect the market, noting investors now widely anticipate the change following the latest announcement, though the broker does not expect it before the second half of 2026 or later.
The sources: Saudi Arabia Capital Markets Authority, Bloomberg
