The Saudi Stock Exchange (Tadawul) will begin a new phase in its financial and economic history starting tomorrow, Sunday, February 1, 2026, with the implementation of the decision to allow all categories of foreign investors to invest directly in the main market. This pivotal step ends an era of regulatory restrictions, opening the door to global capital flows without the stringent qualification requirements that were previously in place.
Lifting restrictions and promoting openness
The Capital Market Authority announced the adoption of a new regulatory framework that officially abolishes the concept of the "Qualified Foreign Investor" (QFI), a system that restricted direct investment to specific international financial institutions meeting certain criteria regarding asset size and experience. Under the new amendments, swap agreements that allowed non-resident foreigners to benefit from the economic returns of shares without actually owning them have also been terminated, making direct ownership available to all individual and institutional investors worldwide.
The context of Vision 2030 and the development of the financial sector
This decision cannot be viewed in isolation from the broader context of Saudi Vision 2030, specifically the Financial Sector Development Program, which aims to diversify income sources and build an advanced and globally integrated financial market. The Saudi market has undergone significant historical milestones that paved the way for this decision, most notably its inclusion in global emerging market indices such as MSCI and FTSE Russell in recent years, placing the Kingdom on the radar of international investors. The full opening of the market represents the culmination of years of efforts to enhance its attractiveness and improve the investment environment.
Expected economic impact
These fundamental amendments aim to deepen the Saudi financial market and increase liquidity levels, thereby reducing sharp price fluctuations and enhancing pricing efficiency. Experts also anticipate that the entry of new investor segments will bolster governance and transparency practices among listed companies, as foreign investors typically demand high standards of disclosure. Through this initiative, the Kingdom aspires to solidify Tadawul's position among the top 10 global stock exchanges in terms of market capitalization and trading volume.
Growth figures and indicators
Official data from the Capital Market Authority (CMA) indicates a steady growth in foreign investor confidence, with international investors' holdings in the Saudi financial market exceeding SAR 590 billion by the end of the third quarter of 2025. International investments in the main market specifically reached approximately SAR 519 billion, compared to SAR 498 billion at the end of 2024. The CMA paved the way for this decision in July 2025 by simplifying the procedures for opening investment accounts, underscoring the Kingdom's well-considered and gradual approach to reaching this historic milestone.
