• Saudi CMA allows GCC residents to directly invest in shares listed on Tadawul for the first time.
• Investors no longer need swap agreements or institutional intermediaries to access Saudi’s main market.
• Rule changes also simplify account opening and support Saudi’s appeal as a long-term investment hub.

Saudi Capital Market Authority

The Saudi Capital Market Authority (CMA) approved a set of amendments that will allow GCC residents to directly invest in Saudi Arabia’s stock market for the first time.

The requirements for opening an investment account for individual foreign investors residing in one of the GCC countries. Additionally, the scope of securities they can directly invest in now includes the shares of listed companies in the Saudi main market, Tadawul.

Investment Destination

Previously, their participation was limited to the debt market, the parallel market Nomu, investment funds and the derivatives market. Moreover, trading in the main market was previously restricted to being a financial beneficiary under a swap agreement with a capital market institution. Additionally, trading was previously permitted as a client of a capital market institution that made investment decisions on their behalf.

This approval introduces a new category of investors to the shares listed on the main market. Thus, it provides them a direct channel to invest in the Saudi capital market even after their residency has ended. This is provided they have previously opened an investment account in the Kingdom. Moreover, this change will strengthen investor confidence and reinforce Saudi as a long-term investment destination.

Additionally, the amendments aim to facilitate the procedures for opening and operating investment accounts for various categories of capital market institution clients.

It is noteworthy that foreign investment in the Saudi capital market has seen significant growth over the past four years. The value of foreign ownership in the market reached over SAR 500 billion by the end of Q1 2025. Furthermore, net foreign investment amounted to SAR 218 billion by the end of last year.