Saudi Arabia Opens Stock Market to GCC Residents in Major Investment Reform

July 13, 2025
Saudi Arabia Opens Stock Market to GCC Residents in Major Investment Reform
  • 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


Saudi Arabia opens stock market to GCC citizens, expats in major investment move

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



More Stories