Saudi Arabia’s Capital Market Authority (CMA) has launched a public consultation on a draft proposal to open the Main Market to all categories of non-resident foreign investors.
If adopted, the reform would abolish the Qualified Foreign Investor (QFI) framework and swap agreements, allowing direct access to listed shares for all foreign participants.
The consultation period runs until October 31.
Saudi foreign investor reform
The CMA called on market participants and stakeholders to provide feedback on the draft proposal as the consultation, which runs for 30 calendar days until October 31, forms part of the CMA’s broader strategy to attract new capital flows, expand the investor base, and increase market liquidity.
If approved, the proposal would eliminate the current Qualified Foreign Investor (QFI) system for the Main Market, removing existing qualification requirements.
It would also abolish the use of swap agreements, which previously limited non-resident foreign investors to only the economic benefits of listed securities. Instead, the draft would allow direct investment in listed shares.
By the end of the second quarter of 2025, international investor ownership in the Saudi capital market exceeded SR528bn ($140.8bn).
Foreign investments in the Main Market alone stood at around SR412bn ($109.8bn), representing growth of 471 per cent compared with SR 72bn ($19.2bn) at the end of 2015.
The CMA said the draft reforms are expected to further boost foreign inflows.
In July 2025, the CMA approved measures to simplify procedures for opening and operating investment accounts for certain investor categories.
CMA reforms
These included foreign investors residing in Gulf Cooperation Council (GCC) countries and those who had previously resided in the Kingdom or any GCC state.
The move was aimed at strengthening confidence in the Main Market and supporting the wider economy.
The draft consultation reflects the CMA’s gradual approach to market liberalisation, building on previous reforms and paving the way for further steps designed to position Saudi Arabia’s capital market as a globally competitive hub.
The CMA confirmed that all comments submitted will be taken into full consideration before finalising the amendments. Feedback can be provided via the Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), which is affiliated with the National Competitiveness Centre.
The platform is accessible at: https://istitlaa.ncc.gov.sa/en/Pages/default.aspx.
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