Prime Highlight:
- Saudi Arabia’s stock market posted its biggest single-day gain since September 2025 after regulators announced full access for foreign investors.
- The reform is being hailed as the most significant market change in a decade and a major boost to investor confidence and liquidity.
Key Facts:
- The Tadawul All Share Index surged 2.5% at the open on January 7, briefly crossing the 10,500-point level.
- From February 1, foreign investors can directly invest in the Main Market as the CMA removed the Qualified Foreign Investor framework and swap agreements.
Background:
Saudi Arabia’s stock market jumped sharply at the opening on January 7, marking its largest single-day gain since September 2025. The stock market surged after the Capital Market Authority decided to fully open the Kingdom’s equity market to all foreign investors.
The Tadawul All Share Index jumped 2.5% at the open, breaking above the 10,500-point level. Buying interest was broad, with 260 listed companies posting gains, while only a handful of stocks declined or remained flat. The index later eased slightly but continued to trade firmly around 10,460 points.
The rally came after the CMA announced that, from February 1, foreign investors will be allowed to invest directly in the Main Market without prior qualification requirements. The regulator scrapped the Qualified Foreign Investor framework and stopped swap agreements, making the market easier for global investors to access.
Market participants welcomed the move. Hesham Abou Jamee, chief adviser at Naif Al Rajhi Investments, described the decision as the most impactful market reform in a decade. He said the announcement had an immediate effect and could help the market recover from recent losses.
Financial analyst Ikrami Abdullah said the timing was important, as the market had faced weak liquidity and declining sentiment in recent weeks.
Official figures show foreign investor ownership in the Saudi capital market exceeded SR590 billion by the end of the third quarter of 2025, with SR519 billion invested in the Main Market.
Analysts are now watching to see if the current 49% foreign ownership limit will rise. They say removing the limit could bring in billions of dollars in new investments.
The reform supports Saudi Arabia’s Vision 2030 goals and builds on earlier efforts to attract global capital, including partnerships with Asian financial markets. Major financial institutions praised the move, calling it a key step toward deeper, more liquid markets.
