In a landmark move set to reshape its financial landscape, Saudi Arabia has announced it will fully open its capital market to international investors. The Kingdom's Capital Market Authority (CMA) declared on Tuesday, January 6, 2026, that all categories of foreign investors will gain unrestricted access starting February 1, 2026.
End of the QFI Era and New Regulatory Freedom
The decision marks a significant liberalization by abolishing the previous Qualified Foreign Investor (QFI) framework. This system had required foreign entities to meet specific qualification criteria before participating in the market. Under the new amendments, those requirements are eliminated, allowing any foreign investor to enter.
Furthermore, the CMA is scrapping the regulatory structure for swap agreements. These complex instruments were previously used by non-resident foreign investors to gain economic exposure to Saudi-listed securities without direct ownership. The removal of this framework simplifies the investment process significantly.
Driving Growth and Diversification
The CMA's primary goal with this historic shift is threefold: to expand and diversify the investor base, support greater inflows of foreign capital, and enhance the overall liquidity of the market. This strategy aligns with Saudi Arabia's broader Vision 2030 plan to diversify its economy away from oil dependency.
The authority highlighted the growing confidence of international investors, citing compelling data. By the end of the third quarter of 2025, foreign holdings in the Saudi capital market totaled over 590 billion Saudi riyals (approximately $157.3 billion). The majority of this, about 519 billion riyals, was invested in the Main Market.
Building on Strong Momentum
This figure represents a notable increase from the end of 2024, when foreign ownership was recorded at 498 billion riyals. The consistent growth demonstrates rising international interest even before the full market opening.
The CMA expressed strong optimism that the amended regulations will act as a powerful catalyst. They are expected to draw additional international investment and further strengthen the position and resilience of the Saudi capital market on the global stage.
This move positions Saudi Arabia as one of the most accessible major markets in the Gulf region, potentially redirecting significant global investment flows and offering new opportunities for portfolio diversification worldwide.
