The Saudi Stock Exchange’s main index (TASI) recorded a remarkable increase of more than 4%, driven by a wave of widespread optimism following the official announcement of fundamental regulatory amendments that open the door for all categories of foreign investors to invest directly in the main market starting from February 1, 2026.
The market reacted positively and immediately to the news, with the index jumping 428 points, equivalent to a 4.1% increase since the announcement, settling at 10,718 points, compared to the closing level of 10,290 points on January 6. In today's trading specifically, the index continued its upward trend, adding 106 points (1.02%), amidst active liquidity amounting to approximately SAR 2.57 billion and the trading of 148.5 million shares. Trading screens showed 214 companies' shares in positive territory, while only 41 companies saw their shares decline.
A strategic shift in the history of the financial market
This move comes as part of a series of structural economic reforms underway in Saudi Arabia under Vision 2030, which aims to diversify income sources and reduce dependence on oil. This decision culminates a long process of gradually opening up the financial market, which effectively began in 2015 when Qualified Foreign Investors (QFIs) were allowed to enter the market under specific conditions, followed by the inclusion of the Saudi market in global emerging market indices such as MSCI and FTSE Russell.
Under the new amendments adopted by the Capital Market Authority's board, the concept of "qualified foreign investor" has been abolished, removing bureaucratic barriers and previous qualification requirements. Swap agreements, which granted foreigners economic benefits without direct ownership, have also been eliminated, making investment direct and accessible to all categories from around the world.
Economic implications and future prospects
This decision is expected to significantly enhance the standing of the Saudi Stock Exchange (Tadawul) on the international stage. Economically, opening up direct investment will attract substantial foreign capital inflows, boosting liquidity and market depth. Furthermore, expanding the investor base will improve pricing efficiency for listed companies and elevate transparency and governance standards in line with international best practices.
Economic analysts believe that this step will enhance the attractiveness of the Saudi economy as a leading investment destination in the Middle East, and support local companies’ plans to obtain the necessary financing for expansion and growth, which ultimately serves the overall national economy and enhances the Kingdom’s global competitiveness.
