Overview
- All non-resident investors will be permitted to own shares directly on the Tadawul Main Market under a new regulatory framework approved by the CMA.
- The reforms eliminate the Qualified Foreign Investor regime and remove swap-based exposure, replacing indirect routes with full direct participation.
- The announcement lifted the index by as much as 2.5% intraday, while trading the next day saw turnover exceed 1.5 billion riyals in the first 30 minutes.
- International holdings were already sizable by end-Q3 2025, with foreign ownership above SR590 billion and roughly SR519 billion in the Main Market alone.
- Analysts say sizable new inflows may hinge on stronger returns and potential changes to the current 49% foreign-ownership cap, which market participants are watching closely.