Saudi Arabia Capital Markets Authority consults on opening the Main Market to all non-resident foreign investors and abolishing Qualified Foreign Investor and swap arrangements

Saudi Arabia’s Capital Markets Authority has launched a public consultation on a draft regulatory framework that would allow all categories of non-resident foreign investors to invest directly in the Main Market. The proposal would remove the Qualified Foreign Investor concept for the Main Market and abolish swap agreements as a route to obtain only the economic benefits of listed securities, replacing these structures with direct investment in listed shares. The draft is intended to broaden and diversify the investor base, attract additional investments and increase market liquidity. The CMA reported that international investor ownership exceeded SAR 528 billion by the end of the second quarter of 2025, while foreign investments in the Main Market reached around SAR 412 billion, up 471% from SAR 72 billion at the end of 2015; the draft is expected to further attract foreign capital. The consultation also follows July 2025 measures to simplify procedures for opening and operating investment accounts for certain investor categories, including foreign natural persons residing in a Gulf Cooperation Council country and those who previously resided in Saudi Arabia or another GCC country. The consultation runs for 30 calendar days and closes on 9/5/1447H, corresponding to 31 October 2025. Feedback will be considered in finalising the proposed amendments ahead of a decision on approval.