Saudi Arabia to Fully Open Capital Market to Foreign Investors in February 2026

A remarkable moment for Saudi Arabia’s financial sector, as the Kingdom prepares to fully open its capital market to all foreign investors from 1 February 2026. This move represents one of the most significant liberalisation steps in the history of the Saudi capital market and aligns closely with the Kingdom’s Vision 2030 objectives.

Following the approval of a new regulatory framework, the Capital Market Authority (CMA) has confirmed that all categories of foreign investors will be allowed to participate directly across all segments of the Main Market. The reform removes long-standing restrictions on non-resident participation and is designed to enhance market liquidity, diversify the investor base, and attract greater international capital inflows.

End of the Qualified Foreign Investor (QFI) Regime

A key pillar of the reform is the abolition of the Qualified Foreign Investor (QFI) system, which previously required foreign institutions to meet stringent eligibility criteria before accessing Saudi equities. By eliminating the QFI framework, the CMA has significantly lowered barriers to entry and simplified market access for global investors.

In addition, the CMA has removed the swap-agreement framework, which had only allowed indirect exposure to Saudi listed securities. Under the new rules, foreign investors can now purchase shares directly, without the need for intermediary structures, bringing Saudi Arabia in line with leading global capital markets.

Rising Foreign Investment in the Saudi Market

Foreign participation in Saudi Arabia’s capital market has been steadily increasing in recent years, reflecting growing global confidence in the Kingdom’s economic reforms. By the end of Q3 2025, foreign ownership exceeded SAR 590 billion, with SAR 519 billion invested in the Main Market alone—up from SAR 498 billion at the end of 2024.

The CMA expects the latest regulatory amendments to further accelerate foreign inflows, strengthen market depth, and reinforce Saudi Arabia’s position as a regional and global investment hub.