Saudi Arabia Welcomes All Foreign Investors to Its Stock Market

Saudi Arabia’s Capital Market Authority (CMA) revealed on Monday that it will open the Kingdom’s capital markets to all types of foreign investors starting February 1, 2026. This move eliminates the previous eligibility thresholds that limited direct participation in the Main Market.

The CMA’s decision does away with the “Qualified Foreign Investor” (QFI) framework, which required certain foreign institutions to meet specific criteria, including a minimum assets-under-management threshold of $500 million USD.

In its announcement, the CMA stated that this change aims to expand the investor base and enhance liquidity. The regulator emphasized that the removal of the QFI concept allows all foreign investors to access the market without needing to meet qualification requirements.

While this rule change increases access, the CMA did not indicate any immediate changes to foreign ownership limits for listed companies. However, market analysts are speculating whether the long-standing 49% foreign ownership cap might be reconsidered in the future. For instance, Naresh Bilandani, managing director of equity research at Jefferies International, noted that an increase in the foreign ownership limit to between 60% and 100% could potentially attract between $3.4 billion and $10.2 billion in passive inflows from MSCI and FTSE index trackers.

Saudi Arabia’s broader investment strategy, which includes a focus on gaming and esports, has been significantly supported by state-linked capital. Currently, around 380 companies are listed on the Saudi Stock Exchange. This policy shift to broaden foreign participation in public markets comes as investors closely examine the Kingdom’s funding capabilities amid substantial spending commitments and high-profile transactions.

A notable recent example is the pending $55 billion take-private deal for Electronic Arts (EA), led by a consortium that includes Saudi Arabia’s Public Investment Fund (PIF), Silver Lake, and Affinity Partners, a firm managed by Jared Kushner, a former senior advisor to President Donald Trump.