Saudi Arabia will allow foreign investors to expand their trading activity across its capital markets and continue trading even if they leave the Gulf, as the kingdom seeks to expand its investor base.
Individual foreign investors residing in the six-nation Gulf region can now invest in shares of listed companies on the main Saudi stock market, or Tasi, the Capital Market Authority (CMA) said in a statement on Monday.
This compares to the previous limitation of their securities activity on the debt instruments market, investment funds, the derivatives market and the parallel market known as Nomu. Saudi Arabia opened its stock exchange to Gulf residents in July, a move expected to help attract more foreign direct investment into the Arab world's largest bourse.
"Furthermore, 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 CMA said.
Also, foreign investors who had previously resided in Saudi Arabia or any of the Gulf nations will now be allowed to continue operating their investment accounts and investing in listed shares on Tasi even after their residency has ended and they have returned to their home country, the CMA said.
These investment activities will be permitted provided investors were able to open an investment account in the kingdom, it added.
“These enhancements are part of the authority’s continued efforts to create a transparent and accessible investment environment for both local and international participants," said Abdulaziz Almojel, deputy for strategy, research and international relations at the CMA.
"By facilitating account procedures and broadening investor eligibility, we are strengthening the foundations of the Saudi capital market and reinforcing our role as a forward-looking regulator supporting national economic development."
Saudi Arabia continues to strengthen its economic agenda by rolling out several initiatives that underpin its diversification programme. The kingdom's real gross domestic product growth is expected to accelerate to 3.9 per cent in 2026, according to the International Monetary Fund, supported by the Opec+ production cut phase out schedule.
Saudi Arabia’s non-oil private sector gained further momentum in September, growing at its fastest pace in six months, according to the latest Riyad Bank Saudi Arabia Purchasing Managers Index by S&P Global.
Additionally, the kingdom has awarded contracts worth $196 billion to develop its commissioned giga projects, up 20 per cent on 2024, with the increase driven by real estate and infrastructure work amid a shift from planning to execution.
