Regulatory amendments broaden foreign investor access to listed securities and support the continued opening of Saudi Arabia’s capital market.
Amendments to the Rules for Foreign Investment in Securities and the Investment Accounts Instructions came into effect in Saudi Arabia on 1 February 2026.
A key element of the amendments is the removal of the regulatory framework associated with the concept of the “Qualified Foreign Investor.” Foreign natural and legal persons, whether resident or non-resident, may now invest in listed securities, debt instruments, and investment fund units, subject to the applicable rules and restrictions.
The amendments represent an important development in the continued opening of Saudi Arabia’s capital market and may contribute to broadening its investor base and strengthening international participation.
Expanded access does not eliminate the remaining regulatory requirements. A non-resident foreign investor, other than a foreign strategic investor, may not own 10% or more of the shares or convertible debt instruments of a listed issuer. Foreign investors collectively, excluding foreign strategic investors, may not own more than 49% of the shares or convertible debt instruments of a listed issuer.
Investors must also consider restrictions contained in the constitutional documents of listed companies, sector-specific ownership restrictions, investment-account procedures, beneficial-ownership requirements, and applicable anti-money laundering controls.
The amendments reflect the continuing development of the Saudi capital market framework, balancing greater international access with transparency, investor protection, and market stability.