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The Capital Market Authority reported that the decision removes the Qualified Foreign Investor requirement for the main market, extending participation to all categories of overseas investors without previous restrictions that had limited activity to debt instruments, funds, derivatives and the parallel Nomu exchange. According to the regulator, this builds upon an earlier opening to Gulf Cooperation Council residents in July 2025 and a regulatory framework approved in October for non-residents even after they depart the region. Trading volumes on Tadawul rose sharply in response, with turnover exceeding 1.5 billion Saudi riyals, or $400 million, in the first 30 minutes of the session on January 8.
The reforms tie into Saudi Arabia’s Vision 2030 programme, which the Vision 2030 2025 Annual Report indicated has broadened the private sector to 1.7 million small and medium-sized enterprises that support 8.88 million jobs and contribute 22.9 percent to gross domestic product. General Authority for Statistics data places foreign direct investment inflows at $31.7 billion in 2024, reflecting a 24 percent rise from the prior year although falling short of the National Investment Strategy target of $100 billion annually by 2030. The Public Investment Fund reported assets under management climbing to $925 billion last year as authorities seek to channel capital into non-oil sectors including renewable energy, tourism and advanced manufacturing.
Investment professionals offered mixed assessments of the opening. Redwood Heritage Group founder and chairman Ahmed Saidali said, “Opening the market is a necessary step. Whether capital follows will depend on liquidity, governance and earnings credibility.” Analysts at Dubai-based Sovereign PPG stated that Saudi Arabia has focused on unlocking private-sector growth, expanding global partnerships and creating a more competitive and transparent business environment.
The Capital Market Authority is reviewing approximately 40 initial public offering applications submitted by the close of 2025, which positions Tadawul for 20 to 30 listings this year according to the regulator. A BDO capital markets assessment found that the first five months of 2025 alone saw 12 companies list and raise more than 7.1 billion Saudi riyals. Endeavor Saudi figures show that between 2023 and 2025 the kingdom’s exchanges accounted for 106 of 130 IPOs across GCC markets, or about 82 percent of the regional total.
Geopolitical analyst Irina Tsukerman told The National that some sectors are benefiting from reforms, population growth and rising domestic consumption, while others remain closely tied to state spending cycles and energy revenue. She added that market volatility over the past year reflects this reality. Tsukerman noted that while governance and transparency have improved, investors may still face challenges distinguishing commercial from national objectives at state-linked companies where reporting standards and minority shareholder protections continue to develop.
Saudi authorities approved a 2026 budget that provides for 350 billion Saudi riyals in spending against a projected 44 billion riyal deficit, government statements show. The kingdom also completed a four-tranche dollar bond sale that raised $11.5 billion as it works to broaden its investor base amid lower oil prices and more cautious fiscal planning. Zest Equity co-founder Rawan Baddour said, “Ultimately, for any index to be able to compete globally and become more attractive, it needs to be able to attract the best companies to come and consider it for the listing.”
