Saudi Arabia Opens Its Capital Markets to Foreign Investors: Key Reforms and Implications
Type
E-journal
Date
17 Aug 2026
Jurisdiction
Saudi Arabia
Taxonomy
Companies & Corporate Bodies, General Commercial Law, General Securities, Financial Institutions
Relevant company
Hourani & Partners
Legal reference
Saudi Arabia Capital Market Authority Decision No. 2-26-2023/1444, Saudi Arabia Capital Market Authority Decision No. 1-2-2026/1447
Summary
This article written by Rudolf Goldschmidt, Lea Hage Chahine, and Abdullah Qureshi of Hourani & Partners examines the significant liberalisation of Saudi Arabia’s capital markets following the 2026 amendments to the Capital Market Authority’s Rules for Foreign Investment in Securities. It highlights the abolition of the Qualified Foreign Investor regime and the removal of swap-based investment structures, enabling foreign investors to directly own securities listed on the Saudi Exchange and exercise associated shareholder rights.
Analysis
On 5 January 2026, the Capital Market Authority (CMA) of the Kingdom of Saudi Arabia published amendments to the Rules for Foreign*[1] Investment in Securities*[2] (the FIS Rules), which came into effect on 1 February 2026.
The FIS Rules represent a significant liberalisation of the Saudi capital markets, permitting foreign investors to access the Saudi market directly, and removing key structural constraints that previously governed their participation. These reforms form part of Saudi Arabia’s broader strategy to deepen its capital markets and increase international participation in support of the objectives of Vision 2030.