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The Capital Market Authority, the Saudi Arabia financial regulator, yesterday announced that it is opening doors to non-resident foreign investors into the economy, taking effect from 1 February. The Kingdom wants the change to boost its $2.3 trillion equity market.

“Accordingly, the capital market, across all its segments, will be accessible to various categories of investors from around the world for direct participation,” the CMA said in a statement. The change will bolster investment inflows and increase market liquidity, it said.

The Kingdom is an emerging market, officially included in major indices such as the MSCI Emerging Markets Index.

Rule changes have eliminated the concept of the Qualified Foreign Investor (QFI) in the Main Market. The adjustments also removed the regulatory framework governing swap agreements, which were used as an option to enable non-resident foreign investors to obtain economic benefits only from listed securities, and the allowance of direct investment in shares listed on the Main Market. One restriction had required investors to have at least $500 million in assets under management.

International investors' had an ownership stake in Saudi Arabia’s capital market of more than SAR590 billion ($157.3 billion) by the end of the third quarter of 2025. International investments in the main market reached about SAR519 billion during the same period, up from SAR498 billion at the end of 2024.

In December 2025, the CEO of the Saudi stock exchange said 40 companies had applied to go public, with the number of initial public offering hopefuls climbing to as many as 100 (source: Bloomberg, 6 January).