KSA’s stock exchange will open to foreign investors this Sunday as the Kingdom attracts potential capital.
The Kingdom’s stock exchange will open to a broader range of foreign investors from 1 February, aiming to boost liquidity and market activity.
QFI Model Closes
The move departs from the restrictive qualified foreign investor (QFI) model, allowing institutions with assets under $500M, previously excluded, to participate.
Shifting Regulation
“The change is enormous,” said Waleed Rasrommani, Saudi managing partner at Linklaters.
Analysts expect it will attract new capital, tighten spreads, and increase competitiveness.
Tadawul Expands Access
The Tadawul All-Share Index (TASI) fell 13% in 2025, while IPO performance was weak, highlighting the need for more liquidity.
Foreign investors, though holding just 4.7% of issued shares, accounted for roughly 40% of trading underscoring their outsized role in market activity.
The reforms are part of broader measures, including higher foreign-ownership limits, which could boost Saudi Arabia’s weighting in global indices like MSCI Emerging Markets, potentially attracting $18B in annual investment.
“This could start a virtuous cycle of liquidity and market growth,” said Oliver Schutzmann, the CEO of Iridium.
TASI has already risen 9% since the changes were announced.
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