Saudi Arabia proposes landmark reforms to open Tadawul to foreign investors

Saudi Arabia’s Capital Market Authority (CMA) has launched a public consultation on sweeping reforms that would open the Kingdom’s main exchange, Tadawul, to all foreign investors — a step aimed at deepening liquidity and attracting global capital.

The draft amendments have been published on the Public Consultation Platform 'Istitlaa', which gathers feedback from the public and government entities on proposed laws and regulations.

The draft plan would scrap foreign investor restrictions, end swap agreements, and allow direct access to Saudi stocks as the Kingdom moves to deepen liquidity and attract global capital.

Under the plan, the existing requirement for investors to qualify as “foreign institutional investors” would be scrapped, allowing direct participation by overseas investors without restrictions. The proposal would also eliminate swap agreements, giving foreigners full access to foreign direct investment in Saudi-listed stocks.

The CMA said the reforms are designed to strengthen market liquidity, attract larger inflows of international capital, and broaden market depth. Officials described the consultation as part of a phased strategy to liberalise the financial sector and make the Saudi market more competitive and appealing to global investors.

Last week, a CMA board member told Bloomberg that majority foreign ownership of listed companies could be permitted before the end of the year, dismantling longstanding restrictions that confined foreigners to minority stakes.