Saudi Arabia’s Capital Market Authority ( CMA ) has approved a set of amendments to the procedures for foreign investors to open and operate investment accounts in the kingdom.

The amendments aim to strengthen the attractiveness of the Saudi capital market for both local and international investors, enhance investor protection, and reinforce the confidence of market participants. The changes, which align with regulatory and technological developments in the kingdom, include the addition of new investor categories and the regulation of transactions related to investment accounts.

According to the CMA announcement, the requirements for opening an investment account for individual foreign investors residing in one of the Gulf Cooperation Council ( GCC ) countries have been revised. Moreover, the scope of securities they can directly invest in has been expanded to include the shares of all companies listed on the Tadawul Stock Exchange.  

Prior to the changes, their access was limited to the debt instruments market, the Parallel Market ( Nomu ), investment funds, and the derivatives market. Also, trading in the main market was previously restricted to being a final beneficiary under a swap agreement with a capital market institution or as a client of a capital market institution that made investment decisions on their behalf.

The amendments introduce a new investment opportunity for investors who previously resided in the kingdom or GCC countries. For the first time, these investors will continue operating their investment accounts and investing in listed shares in the main market even after their residency ends and they return to their home country. This change not only strengthens investor confidence but also reinforces the perception of Saudi Arabia as a long-term investment destination, according to the CMA.

Foreign investment in the Saudi capital market has seen significant growth over the past four years. Foreign ownership in the market has surpassed 500 billion riyals ( US$133.33 billion ) by the end of Q1 2025. Net foreign investment reached 218 billion riyals by the end of last year, up from 140 billion riyals in 2021. Sustainable investments held by qualified foreign investors  reached approximately 7.8 billion riyals by the end of 2024, up 29% from the 2023.

The CMA previously introduced several initiatives related to foreign investors, aiming to stimulate investment, enhance the market’s attractiveness and efficiency, and draw in more foreign capital. These included allowing foreign investment in listed real estate companies operating in Makkah and Madinah.