RIYADH — Saudi Arabia has totally opened its capital market to all classes of overseas buyers for the primary time on Sunday, Feb. 1. This permits all forms of abroad establishments and funds to commerce instantly on Tadawul All Share Index (TASI), the principle inventory market.
As of Sunday, all classes of overseas buyers, together with establishments, funds, and different certified entities, can entry Saudi equities with out prior qualification necessities, bringing the market nearer consistent with worldwide entry requirements. This was consistent with a beforehand introduced determination by the Board of Capital Market Authority (CMA), with its approval of a brand new regulatory framework allowing non-resident overseas buyers to speculate instantly in the principle market, making the capital market accessible to a broad vary of world buyers.
The CMA Board determination permits overseas buyers to enter the market with out qualification necessities, abolishes the regulatory framework governing swap agreements, and permits direct funding in shares listed on the principle market. Nonetheless, opening the market doesn’t eradicate overseas possession limits in listed firms, as some companies stay topic to most overseas possession caps underneath their rules.
Underneath the brand new framework, overseas buyers are labeled as resident foreigner, overseas resident in GCC international locations, non-resident foreigner, overseas authorized entity, overseas strategic investor, and overseas fund. Non-resident overseas buyers—excluding strategic overseas buyers—are prohibited from holding 10 % or extra of the shares in any listed firm. As well as, whole overseas possession, whether or not by resident or non-resident buyers and excluding strategic buyers, is capped at 49 % of a listed issuer’s shares.
The CMB Board lately authorised amendments with the goal to broaden and diversify the investor base in the principle market, assist funding inflows and improve market liquidity. Underneath the brand new framework, the CMA has eradicated the idea of the Certified International Investor (QFI) in the principle market, enabling all classes of overseas buyers to entry the market with out the necessity to meet qualification necessities.
The amendments additionally abolished the regulatory framework governing swap agreements, which beforehand allowed non-resident overseas buyers to achieve solely financial publicity to listed securities, and now allow direct share possession in the principle market. The CMA stated the amendments are anticipated to draw further worldwide funding.
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It’s noteworthy that worldwide buyers’ possession within the Saudi capital market exceeded SR590 billion by the top of the third quarter of 2025. International investments in the principle market reached about SR519 billion throughout the identical interval, up from SR498 billion on the finish of 2024.
