Riyadh Weighs Opening Main Market to All Foreign Investors in Major Reform Push Consultation runs until October 31, 2025.
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The Saudi Capital Market Authority (CMA) has initiated a public consultation on a draft proposal that could fundamentally reshape foreign access to the Kingdom's stock market, signaling a bold step toward deeper market liberalization.
Under the draft plan, the CMA would open the Main Market to all non-resident foreign investors, effectively doing away with the existing Qualified Foreign Investor (QFI) scheme and eliminating swap-agreement constraints that until now restricted foreigners to indirect exposure to Saudi listed equities.
The consultation, which runs until October 31, invites feedback from market participants and stakeholders on this potential shift. If adopted, the changes would allow overseas investors to acquire listed shares outright—without needing to meet specialized eligibility criteria or resort to derivatives-based mechanisms.
Foreign holdings in the Saudi capital market have surged in recent years. By the end of Q2 2025, international investment in the market exceeded SR 528 billion (approx. USD 140.8 billion). Of that, nearly SR 412 billion was held in the Main Market—an increase of 471% since 2015, when foreign ownership stood at SR 72 billion.
The CMA has already taken steps to ease access for certain investor categories, like foreign residents in GCC countries or individuals previously based in Saudi Arabia or other GCC states.
Officials say the proposed reform is aimed at broadening the investor base, boosting liquidity, and reinforcing Saudi Arabia's position as an investment hub in the region. The CMA describes the consultation as part of its "gradual approach" to liberalisation, building on past reforms while managing transitional risks.
Still, the shift carries potential challenges. Removing the QFI guardrails may amplify volatility, especially if large foreign flows enter or exit the market suddenly. Market watchers will be observing how the CMA balances openness with safeguards. The final policy could include new limits or cooling mechanisms to manage systemic risk.
All submitted commentary will be considered before the CMA finalizes the amendments, and responses can be submitted via the National Competitiveness Centre's public consultation platform
