Saudi Arabia Opens Tadawul Market to Global Investors in February

Saudi Arabia is making a big move to open its stock market to the world. In early January, the country’s Capital Market Authority (CMA) announced. Starting February 1, all foreign investors may buy shares on the Tadawul Main Market directly.

This means international investors will no longer need special approval or meet strict requirements. In fact, they can invest through licensed Saudi brokers just like local investors. Ultimately, this decision is part of Saudi Arabia’s push to bring more global money into its financial system and strengthen its role as a major financial hub.

What Changed in the Rules?

Until now, foreign investors had to qualify under the Qualified Foreign Investor (QFI) program. This system required investors to meet strict rules such as minimum assets under management and special registration with the CMA. From February 1, that system is gone. Now:

• Any foreign investor can access Tadawul
• No special qualification or approval is needed
• Retail and institutional investors are both allowed
• Investors can trade directly through licensed Saudi brokers

This removes one of the biggest barriers that kept global investors out of the Saudi stock market.

Who Can Invest Now?

The new rules apply to all types of foreign investors. Including: Global institutions, Hedge funds, Asset managers, Individual retail investors and Non-residents and residents. They can open accounts with Saudi brokerage firms and trade directly on the Tadawul exchange. This makes Saudi Arabia one of the most open markets in the Middle East for global investors.

Why Saudi Arabia Is Doing This

Saudi Arabia’s stock market had a tough year in 2025. Specifically, the Tadawul All Share Index (TASI) fell about 12.8% and trading activity slowed. However, by opening the market, the government hopes to increase trading volume. In doing so, it will bring in more global capital, improve liquidity, support company valuations and make the market more stable. Given that the Tadawul exchange is already one of the largest in the world, with a total market value of around $2.7 trillion, officials want to turn it into a true global investment destination.

Part of Vision 2030

Saudi Arabia includes this reform as part of its long term plan, Vision 2030. Specifically, the goal is to reduce dependence on oil and build a modern, diversified economy. Furthermore, opening the capital market helps by attracting foreign investment and supporting private sector growth. While building Riyadh into a global financial center and connecting Saudi companies to global capital. Analysts say similar market openings in other countries have attracted $10-20 billion in new capital each year.

Are There Any Limits?

Yes, some rules still apply:

• Foreign investors can own up to 49% of a company
• A single non-resident investor can own up to 10%
• All investors must follow Saudi trading and custody rules

But many analysts believe these limits may be relaxed in the future.

Market Reaction

The market welcomed the news. On the announcement day, the Tadawul index jumped around 2.5% during the session and closed about 1.6% higher, led by banks and major companies. For global investors, February 1 marks a new door opening into one of the world’s fastest growing economies. Saudi Arabia is officially open for business.