In brief
Final barriers for foreign investors removed
On 6 January 2026, the Capital Market Authority (CMA) announced amendments to the Rules for Foreign Investment in Securities (“FIS Rules”) to remove the Qualified Foreign Investor (QFI) regime and discontinue the CMA’s regulatory framework for swap agreements. The amendments follow changes to the CMA’s Investment Account Instructions to permit foreign individual investors currently residing in a Gulf Cooperation Council (GCC) country or who have previously resided in the Kingdom or in any GCC country to open investment accounts and invest directly in securities listed on the main market of the Saudi Exchange (“Main Market”).
As a result, Saudi Arabia’s capital markets will be open to all categories of foreign investors with direct investment in Saudi shares listed on the Main Market permitted from 1 February 2026, when the amendments become effective.
In parallel, the Securities Depository Center Company (“Edaa”) has implemented a number of corresponding amendments to its Depository Centre Procedures to align with the changes by removing QFIs and Swap agreement counterparties as permitted investor categories. Other consequential changes have been made to the Securities Borrowing and Lending Regulations to remove references to QFIs.
The changes represent a watershed moment for the Saudi capital markets, marking the final chapter in a targeted campaign initiated by the CMA over a decade ago to introduce foreign investors into the Saudi market to deepen market liquidity, increase diversity and sophistication within the investor base and enhance the market.
The significance of this development warrants closer examination of the amendments to the FIS Rules, as well as the events that lead to the changes and key implications for the market.
Therefore, in this Briefing Note we:
- Recount the key developments leading to the full liberalisation of foreign investment in the Saudi capital markets;
- Analyze the amendments to the FIS Rules to drill down and assess the extent to which the framework for foreign investment in the Saudi capital markets has actually changed; and
- Explore the practical implications for access to the Saudi capital markets with the launch of omnibus accounts for shares.
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