The Saudi stock market (Tadawul) witnessed a pivotal shift today, with trading volumes surging significantly and directly, exceeding SAR 1.5 billion in just the first half hour of trading. This surge coincided with a 1.24% rise in the main market index, adding 127.30 points to settle at 10,418.06 points, driven by strong demand for leading stocks in the banking, telecommunications, and healthcare sectors.
A strategic decision that changes the rules of the game
This exceptional activity comes in response to the announcement of the entry into force of fundamental amendments, which open the door wide to all categories of foreign investors to invest directly in the main market starting from February 1, 2026. This decision represents the cancellation of the concept of the “qualified foreign investor” that was previously in place, which removes procedural barriers and allows trading of listed shares without the need for complex qualification requirements or swap agreements, which is a qualitative leap in the history of the Kingdom’s financial market.
Vision context and economic impact
This development cannot be separated from the broader context of Saudi Vision 2030, which aims to diversify income sources and reduce dependence on oil by transforming the Kingdom into a global investment powerhouse. This step complements a long process of structural reforms that began with the inclusion of the Saudi market in global emerging market indices (such as MSCI and FTSE). Full market liberalization is expected to deepen the financial market and raise the levels of transparency and governance in listed companies to meet international standards, thereby enhancing the attractiveness of the Saudi economy as a safe and profitable destination for foreign capital.
Rapid growth in foreign ownership
Official data from the Capital Market Authority indicates a positive response to these trends even before the new decision fully takes effect; the value of international investors' holdings reached approximately SAR 590 billion by the end of the third quarter of 2025, of which SAR 519 billion was in the main market. These figures reflect significant growth compared to 2024, when holdings totaled SAR 498 billion.
Experts and financial analysts believe that this step will place the Saudi market among the top 10 global financial markets in terms of market capitalization and trading volume, thus ensuring sustainable cash flows and enhancing market stability in the long term.
