Saudi Arabia has opened its capital market to all foreign investors for the first time, effective Sunday, February 1. Overseas institutions, funds, and other entities can now trade directly on the Tadawul All Share Index (TASI), bringing the market in line with global standards.
The Capital Market Authority (CMA) removed previous qualification requirements and abolished the swap agreement framework, allowing direct ownership of shares in the main market. Foreign ownership limits remain, with non-strategic investors capped at 10% per company and total foreign holdings limited to 49%.
Under the new rules, foreign investors are classified into six categories, including resident, non-resident, and strategic investors. The CMA expects the reforms to diversify the investor base, enhance liquidity, and attract more international investment, marking a major step toward global market accessibility.
