Saudi Arabia's Capital Market Authority (CMA) has announced a landmark policy change that will open the Tadawul Main Market to all foreign investors starting February 1, 2026. This move eliminates the previous Qualified Foreign Investor (QFI) program, which required international investors to meet strict asset management minimums and obtain special CMA registration.
The new rules allow any foreign investor—including global institutions, hedge funds, asset managers, and individual retail investors—to trade directly on the Tadawul exchange through licensed Saudi brokers, without needing special approval. This removes one of the most significant barriers to entry for global capital into the Saudi market.
The decision is a core component of Saudi Arabia's Vision 2030 economic diversification plan, which aims to reduce the nation's dependence on oil and establish Riyadh as a global financial hub. The Tadawul exchange, with a total market value of approximately $2.7 trillion, is one of the largest in the world but saw its Tadawul All Share Index (TASI) fall about 12.8% in 2025 amid slowing trading activity.
"Saudi Arabia will see a major transformation in 2026 in opening its real estate and financial markets to foreign investors," said Khalid Al-Falih, Saudi Arabia's Minister of Investment. He noted that Foreign Direct Investment (FDI) inflows had already doubled to SAR 119.2 billion in 2024 since the launch of Vision 2030.
Analysts project the market opening could attract an additional $10-20 billion in foreign capital annually. The immediate market reaction was positive, with the Tadawul index surging around 2.5% intraday and closing about 1.6% higher on the announcement, led by gains in banking and major company stocks.
While the reform is significant, some limits remain: foreign investors collectively can own up to 49% of a company, and a single non-resident investor is capped at 10% ownership. Analysts suggest these limits may be relaxed in the future as the market matures.
