Saudi Stock Exchange Opens Doors to All Foreign Investors Starting February 2026
Tadawul's New Era for Foreign Investment
Effective February 1, 2026, the Saudi Exchange, known as Tadawul, will be accessible to all foreign investors, including individual participants. This development signals the end of a long-standing restrictive framework that has limited international engagement in the market.
The announcement was made by the Saudi Press Agency (SPA), citing the Capital Market Authority (CMA) as the driving force behind this initiative. The new policy will allow unrestricted access through direct investments.
Strategic Move Amid Market Performance Challenges
This decision comes at a time when the Saudi stock market has been experiencing relative underperformance compared to its Gulf counterparts. As of January 8, 2026, the Tadawul All Share Index (TASI) stood at 10,473.23 points, having dipped to 10,291.76 points on January 6, a level close to its lows recorded in October 2023.
In 2025, the TASI recorded the weakest annual performance among GCC markets, declining by 13%. In contrast, the Omani MSX surged by 28.2%, while Dubai and Abu Dhabi saw increases of 17.2% and 6%, respectively. This downturn has underscored the urgent need for a strong signal to attract international investors.
Aiming to Capture Global Capital Flows
With a market capitalization nearing $2.7 trillion, Tadawul remains the largest financial hub in the Arab world. The complete opening of the market is designed to enhance liquidity, diversify the investor base, and accommodate a significant pipeline of initial public offerings (IPOs) anticipated in the coming years.
This reform aligns with Saudi Arabia's Vision 2030 initiative, which seeks to transform the historically oil-dependent economy into a more diversified model. The government has also announced an annual borrowing plan of 217 billion riyals for 2026 (approximately €50 billion), highlighting the substantial financing needs associated with major structural projects.
Elimination of Qualified Foreign Investor Concept
By abolishing the Qualified Foreign Investor (QFI) designation on the main market, Saudi authorities aim to lower entry barriers, enhance market attractiveness, and position Tadawul as a premier investment platform for international capital flows in the long term.
Beyond equities, this opening is expected to bolster the kingdom's ambitions in emerging sectors, particularly fintech, with a target of establishing 525 companies by the end of the decade.