Saudi Arabia has opened its stock exchange to residents of Gulf countries, who are now allowed to invest directly in the kingdom’s main Tadawul market. This move is expected to help attract more foreign direct investment into the Arab world's largest bourse.
The approved amendments also allow individual foreign investors who previously resided in Saudi Arabia or other countries Gulf countries to continue investing in listed equities on Tadawul even after their residency expires, the market regulator, the Capital Markets Authority (CMA) said.
“This step enhances the market's international openness and simultaneously builds a long-term investment relationship with broader segments of investors worldwide, within a more flexible and attractive regulatory environment,” Mohammed El-Kuwaiz, chairman of the CMA, said in a post on social media platform X.
Previously, Saudi investment by residents of the six-member economic bloc of the Gulf Co-operation Council was limited to the debt market, the parallel market “Nomu”, investment funds, and the derivatives market.
Their ability to trade in the main market was “limited to swap agreements as ultimate beneficiaries through capital market institutions or as clients of these institutions, where investment decisions are made on their behalf”, the CMA said.
The new measures come as Saudi Arabia continues to open its economy to foreign investors as part of its Vision 2030 programme.
Saudi Arabia launched its Vision 2030 programme in 2016 to diversify its economy away from oil, support private-sector growth, improve female workforce participation and reduce unemployment among citizens.
In recent years, the kingdom has introduced new laws, including companies law and civil transactions law, to attract more foreign investment.
Last week, it also updated its rules to allow foreigners to buy property in specific zones in Riyadh and Jeddah, with “special requirements” for home ownership in Makkah and Madinah.
Development of the kingdom's financial markets is also a central plank of the kingdom's economic overhaul and CMA, like its peers in the other GCC markets, is consistently updating regulations to make capital markets more attractive to local, regional and foreign investors.
Separately, Kuwait on Sunday announced it will start listing and trading of exchange-traded funds, sukuk and bonds on the Kuwait Stock Exchange in 2025, Reuters reported quoting Boursa Kuwait chief executive Mohammed Saud Al-Osaimi.
Stock markets in Saudi Arabia and across the gulf region have also seen a surge in initial public offerings amid growing investor demand over the past few years.
Last year, the kingdom led the Gulf region in IPO volumes with 15 listings on Tadawul and 27 share offerings on the Nomu market, raising more than $4.3 billion, according to a recent PwC report.
Markets in the UAE, Oman, Bahrain and Kuwait also maintained robust IPO momentum last year.
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
Squid Game season two
Director: Hwang Dong-hyuk
Stars: Lee Jung-jae, Wi Ha-joon and Lee Byung-hun
Rating: 4.5/5
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
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