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Foreign investors can soon gain direct access to Saudi Arabia’s main stock market under proposed amendments (pdf) by the Capital Market Authority (CMA). The changes, now open for public consultation until 20 December, aim to streamline investment account procedures and attract more international participation.
Key proposals include allowing GCC-based foreign investors to directly trade shares on the main market — expanding access beyond the debt market, Nomu, and derivatives. Individual foreign investors who previously resided in Saudi Arabia or GCC countries would also be permitted to maintain their accounts after leaving the region.
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The amendments seek to reinforce investor protection, stimulate market liquidity, and simplify account opening for various investor categories, including local endowments, strengthening the Saudi capital market’s appeal both domestically and internationally.
IN CONTEXT- Current Tadawul regulations allow non-resident foreign investors to trade in the Nomu parallel market and the debt market. In 2015, the Kingdom launched its Qualified Foreign Investors (QFI) program to allow certain international institutional investors with “direct and consistent access to the Saudi capital market.” The program was amended in 2019 to allow for a broader range of institutional investors to qualify as QFIs.
