Saudi Arabia Opens Stock Market to GCC Residents in Major Investment Reform
July 13, 2025
Previously, GCC investors could only access the main market through indirect swap agreements, limiting their autonomy, but now they can participate directly, reflecting a commitment to liberalization.
The CMA has increased foreign investor participation, allowing up to 49% ownership in listed companies for non-Saudis, with certain exemptions for strategic investors.
In addition to stock market reforms, there is increased flexibility for Real Estate Investment Trusts (REITs) to invest in development projects, potentially boosting returns.
Regional infrastructure development, including logistics and energy projects, continues to be a key growth driver, supported by initiatives like the expansion of the Saudi Railways Company.
Saudi Arabia's stock market remains the largest in the Gulf, with a trading value of $183.5 billion in the first half of 2025, accounting for over 40% of the region's market capitalization.
Saudi Arabia has announced that residents of Gulf Cooperation Council (GCC) countries can now directly invest in its main stock market, Tadawul, marking a significant step in market liberalization.
The Capital Market Authority (CMA) has simplified procedures for opening and operating investment accounts to facilitate easier access for various investors, including regional residents.
This move is part of Saudi Arabia's broader Vision 2030 initiative aimed at attracting foreign investment and modernizing its capital markets.
While some regions like Makkah and Madinah remain restricted for foreign ownership, the government's gradual liberalization of other areas demonstrates a strategic effort to attract more capital.
Saudi Arabia is also fostering growth in the tech sector through partnerships in AI and cybersecurity, exemplified by collaborations such as that between the Saudi Digital Government Authority and Oracle.
Broader reforms include allowing investment fund units to be distributed via licensed digital platforms and fintech firms, and improving governance for fund management, enhancing market transparency.
These regulatory updates aim to attract both regional and international investors, increase investor protection, and boost market liquidity, ultimately supporting the growth of the local economy.
Summary based on 5 sources
Get a daily email with more Financial Markets stories
Sources

The Times Of India • Jul 13, 2025
UAE and GCC residents can now invest directly in Saudi Arabia’s main stock market, Tadawul
Gulf News: Latest UAE news, Dubai news, Business, travel news, Dubai Gold rate, prayer time, cinema • Jul 13, 2025
Saudi Arabia opens stock market to GCC citizens, expats in major investment move
Khaleej Times • Jul 13, 2025
Saudi Arabia: UAE, GCC residents can now invest in main stock market
logo • Jul 13, 2025
Saudi Arabia: UAE, GCC Residents Can Now Invest In Main Stock Market