Saudi Arabia Proposes Opening Main Stock Market to Foreign Investors

Saudi Arabia's Capital Market Authority (CMA) has initiated a public consultation regarding a draft proposal to allow all categories of non-resident foreign investors to directly invest in the country's Main Market (TASI). This move aims to eliminate the existing Qualified Foreign Investor (QFI) framework, which currently restricts foreign investment based on specific eligibility criteria. The consultation period will last until October 31, 2025, during which stakeholders are invited to provide feedback.

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The CMA's proposal seeks to broaden and diversify the investor base, attract additional capital, and enhance market liquidity. By removing the QFI requirements and swap agreements, the CMA intends to simplify the investment process for foreign investors, thereby positioning the Saudi market as a more accessible and attractive destination for international capital. The CMA noted that foreign investments in the Main Market have surged from SAR 72 billion in 2015 to approximately SAR 412 billion by the end of Q2 2025, marking a 471% increase.

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This initiative builds on previous reforms aimed at liberalizing the Saudi capital market. In July 2025, the CMA had already simplified account-opening procedures for certain foreign investors, particularly those from Gulf Cooperation Council (GCC) countries. The proposed changes represent a continuation of Saudi Arabia's broader economic strategy, known as Vision 2030, which aims to diversify the economy and reduce dependence on oil revenues.

Saudis seek feedback on plan to open stock market to foreigners

The proposed changes are expected to significantly increase foreign participation in the Saudi stock market. The CMA's efforts align with its goal to create an international marketplace capable of attracting greater foreign capital flows. As of mid-2025, international investor ownership in the Saudi market exceeded SAR 528 billion, indicating a robust interest in the region's investment opportunities.

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While the proposal has been generally well-received, some analysts express concerns regarding the potential risks associated with increased foreign investment. Critics argue that opening the market could lead to volatility, particularly if foreign investors react swiftly to global economic changes. Additionally, there are apprehensions about the adequacy of regulatory frameworks to manage a larger influx of foreign capital.

Saudi CMA opens consultation on allowing all foreign investors direct access to Main Market

The CMA emphasized its commitment to strengthening the regulatory framework and enhancing the Saudi market's global competitiveness. In a statement, the authority noted, “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.”

Saudis seek feedback on plan to open stock market to foreigners

• “This draft aligns with the CMA’s gradual approach to opening the market,” — Capital Market Authority

Saudis seek feedback on plan to open stock market to foreigners

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

Saudis seek feedback on plan to open stock market to foreigners

The CMA will review all feedback received during the consultation period before finalizing the amendments. If approved, these changes could reshape the landscape of foreign investment in Saudi Arabia, potentially leading to increased market activity and liquidity in the coming years.

Saudi CMA opens consultation on allowing all foreign investors direct access to Main Market