Capital Markets
Navigating the Regulatory Landscape of Saudi Arabia’s Capital Markets
The Saudi Capital Market Authority (CMA) has introduced significant regulatory amendments, effective 1 February 2026, aimed at enhancing market accessibility and further encouraging foreign direct investment into Saudi Arabia.
Key highlights of the amended Rules for Foreign Investment in Listed Securities include:
- Elimination of the Qualified Foreign Investor (QFI) framework and swap-based access structures.
- Retention of foreign ownership limits, including a 10% cap per non-resident foreign investorand a 49% aggregate foreign ownership cap.
- Direct access for all foreign investors to shares listed on the Main Market, without the need to fall within defined investor classifications.
- Simplification of investment structures through the removal of classification-based entry requirements.
- Exemption of foreign investors resident in Saudi Arabia from the individual 10% ownership cap, subject to the 49% aggregate foreign ownership limit.
In parallel, the CMA has issued additional controls governing real estate ownershipby listed companies, investment funds, and special purpose entities, including specific requirements applicable to Makkah and Madinah. These measures further enhance regulatory clarity and support Vision 2030objectives.
Market Impact
These developments materially simplify access to the Saudi capital markets and reinforce Saudi Arabia’s position as a leading and competitive investment destination.
Specialist Advice
In light of the evolving regulatory framework, specialist legal support is essential. Please get in touch. ERLF’s Corporate and Commercial Team is well placed to advise clients on market entry, structuring, CMA licensing and ongoing compliance within the Kingdom.
Legal disclaimer: The information published on the website and social media platforms of Eyad Reda Law Firm LLP ("the Firm") is provided for general informational purposes only and does not constitute legal advice or a legal opinion. Use of this information does not create a lawyer–client relationship. While the Firm strives to ensure the accuracy of the content, it accepts no liability for any loss or damage arising from reliance on it. Users are advised to obtain specialised legal advice by submitting a formal request through the Firm's approved communication channels.