Foreign investors can now freely invest in the Saudi Exchange. 

The Capital Market Authority (CMA) announced in January that the capital market will be open to all categories of foreign investors starting 1 February, a landmark decision that would give retail and institutional investors access to one of the most dynamic G20 economies. Accordingly, the capital market, across all its segments, will be open to a wide range of investors globally for direct participation, boosting the market’s profile and exposure to an international investor base. 

The new rules are intended to expand and diversify investors in the main Saudi Exchange market, thereby supporting capital inflows and enhancing market liquidity. The rules also eliminate the concept of the Qualified Foreign Investor (QFI) in the main market, allowing all categories of foreign investors to access the market without the need to meet qualification requirements. 

The amendments also remove the regulatory framework governing swap agreements, which previously enabled non-resident foreign investors to obtain only the economic benefits of listed securities and permit direct investment in shares listed on the Saudi Exchange.

International investors’ ownership in the capital market exceeded SAR 590 billion by the end of the third quarter of 2025, while international investment in the main market reached approximately SAR 519 billion

over the same period. This represents an increase from ownership levels at the end of 2024, which stood at SAR 498 billion. The amendments are expected to further attract international capital. 

In July 2025, the CMA approved measures to simplify procedures for opening and operating investment accounts for certain categories of investors, including foreign individuals residing in a GCC country and those who had previously resided in the kingdom or another GCC state. This step served as an interim phase ahead of the current decision, aimed at strengthening market confidence and supporting the domestic economy. 

These amendments align with the CMA’s gradual approach to market liberalisation, building on earlier phases and laying the groundwork for further measures to open the capital market. The objective is to position the market as an international platform capable of attracting greater foreign capital flows.

NEW LISTINGS

Saudi Arabia dominated initial public oering (IPO) and listing activity in the Gulf region in 2025 with 13 companies listing on the Saudi Exchange's main market, in addition to two transfers from the Nomu market to the main market and listing of 28 companies on the Nomu-parallel market. 

Flynas was the largest IPO this year in the kingdom, raising SAR 4.1 billion (USD 1.1 billion) in one of the region’s biggest aviation listings. Other major IPOs last year include Umm Al Qura for Development & Construction Co., Specialized Medical Company, Derayah Financial Company, and Dar Al Majed Real Estate Company. 

The market boasts just over 462 listed companies, with average daily trade of SAR 5.5 billion.

Foreign and domestic investors are expected to be drawn to the Saudi Exchange, which is constantly being deepened and expanded with a string of new companies across the economic spectrum entering the market. 

Market activity in 2025 reflected a broad cooling in trading conditions. Total market capitalisation declined to SAR 8.818 trillion (USD 2.35 trillion), a year-on-year fall of 13.6%. Still, the market remains among the world’s top 15 in market cap, according to the Saudi Exchange's 2025 market report.

Materials recorded the highest number of trades, accounting for over 15% of total transactions, followed by banks and energy. 

In value terms, banks led market activity, representing 18.6% of total traded value, ahead of materials and energy. By volume, consumer services index was the most active sector, followed by materials and banks. Overall, 2025 was characterised by lower liquidity and more subdued trading compared with the previous year.