Saudi Arabia Opens Consultation on Foreign Investor Rules
Saudi Arabia is proposing a major reform of its stock market to allow direct access for non-resident foreign investors. The consultation is open until October 31, 2025, with the goal of increasing market liquidity and attracting more international capital.
🏛️ Objectives of the Reform
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Full access to the main market: All non-resident foreign investors would be able to buy shares directly on the Tadawul main market, without using the current Qualified Foreign Investor (QFI) framework or swap agreements.
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Simplified eligibility rules: Restrictions on participation would be removed, enabling broader and more direct foreign investment.
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Enhanced liquidity and transparency: Increased direct foreign investment is expected to improve market liquidity and transparency.
📊 Current Context
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As of Q2 2025, foreign participation in Saudi equities exceeded SAR 528 billion (~USD 141 billion).
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The reform aligns with Saudi Arabia’s Vision 2030, aiming to modernize the financial market and diversify funding sources.
🔍 Consultation Process
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Public feedback is being collected via the official “Istitlaa” platform.
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Final rules will be set after reviewing the input from stakeholders.
🌐 Implications for Investors
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Investors could open accounts directly with Tadawul, simplifying market access.
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The reform is likely to attract more institutional international investors and strengthen Saudi Arabia’s position as a regional financial hub.
This initiative marks a significant step in opening the Saudi stock market to global investment, offering new opportunities while supporting the Kingdom’s economic goals.
