Saudi Arabia opens stock market to GCC citizens, expats in major investment move

Dubai: In a landmark regulatory shift, Saudi Arabia’s Capital Market Authority (CMA) has opened the doors of its main stock exchange to GCC citizens and residents, marking the first time they can directly invest without intermediaries.

The announcement was made by Mohammed El Kuwaiz, Chairman of the CMA, who confirmed that new rules eliminate the previous requirement for swap agreements or licenced intermediaries, significantly easing access for regional investors. The change applies to both current and former residents of Saudi Arabia and other GCC countries.

The decision is a pivotal component of the Kingdom’s broader efforts to deepen capital markets and diversify its economy under the Vision 2030 reform agenda. By streamlining the process of opening investment accounts and expanding the eligible investor base, the CMA aims to boost market liquidity, enhance transparency, and foster long-term investor confidence.

“This move promotes the openness of the market internationally, while at the same time building a long-term investment relationship with wider segments of investors around the world, within the framework of a more flexible and attractive regulatory environment,” El Kuwaiz said in a post on X.

In a separate statement, the CMA described the update as a step toward “enhancing the attractiveness of the Saudi capital market for local and international investors, increasing investor protection, and reinforcing market confidence.” The reform follows a public consultation period that began in November 2024, when the CMA released a draft regulation titled "Facilitating the Procedures for Opening and Operating Investment Accounts for Various Categories of Investors." Feedback was collected through the Unified Electronic Platform affiliated with the National Competitiveness Centre, as well as the CMA’s own channels.

Access expansion

The expansion of access for GCC investors forms part of a wider regulatory overhaul introduced by the CMA last week, aimed at modernising Saudi Arabia’s investment fund framework.

Among the key reforms is Investment fund units can now be distributed through licenced digital platforms and fintech firms regulated by the Saudi Central Bank. Governance enhancements include new requirements for fund manager transitions, mandating CMA approval and a minimum 60-day handover to protect investor interests.

Real Estate Investment Trust’s listed on the parallel market have been granted greater flexibility to invest in development projects without rigid asset allocation limits, offering potential for higher returns.

The Kingdom has recently opened its real estate market to foreigners starting in 2026. The new measures reflect the Kingdom’s strategic push to attract foreign capital, modernize its financial ecosystem, and position the Saudi Exchange as a leading capital market hub in the region.