Saudi Arabia to Open Stock Market to All Foreign Investors
The Saudi Capital Market Authority (CMA) has launched a public consultation on a draft proposal to open its Main Market to all non-resident foreign investors. This move, set to modernise the market and boost investment inflows, is part of the CMA's gradual approach to liberalisation.
The consultation, running until October 31, invites feedback from market participants and stakeholders. It follows a surge in foreign holdings, which reached over SR 528 billion (approx. USD 140.8 billion) by the end of Q2 2025. The CMA aims to broaden the investor base and reinforce Saudi Arabia's position as an investment hub in the region.
The draft proposal seeks to eliminate the existing Qualified Foreign Investor (QFI) scheme and swap-agreement constraints. This would allow foreigners direct exposure to Saudi listed equities, without the need for specialized eligibility criteria or derivatives-based mechanisms. However, the CMA acknowledges that removing these guardrails may amplify market volatility. It is considering new limits or cooling mechanisms to manage systemic risk in the final policy.
The CMA initiated the public consultation round in early October 2021, with all submitted commentary to be considered before the final amendments are made. Responses can be submitted via the National Competitiveness Centre's public consultation platform. If adopted, the changes are expected to significantly modernise the Saudi stock market and improve its attractiveness to overseas investors.
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