Residents of Gulf Cooperation Council (GCC) countries, including expatriates, can now invest directly in Saudi Arabia’s main stock market for the first time, following amendments announced by the Capital Market Authority (CMA) on Thursday, 10 July.
Previously, foreign individuals residing in GCC countries were only allowed to invest in limited sectors, such as debt instruments, investment funds, derivatives, and the parallel market known as Nomu, a secondary exchange designed for smaller and growing companies.
The updated regulations, part of a wider effort to expand and modernize Saudi Arabia’s capital market, now allow this group to invest in stocks listed on the main market, removing older restrictions that required swap agreements or indirect investment through intermediaries.
According to an official CMA statement, the reforms are designed to enhance market liquidity, deepen investor participation, and align with the objectives of Vision 2030, Saudi Arabia’s long-term economic diversification strategy.
In a post on X, CMA Chairman Mohammed El-Kuwaiz described the move as a step towards a “more flexible and attractive regulatory environment” that promotes long-term global investment.
The reforms also allow former residents of Saudi Arabia or other GCC countries, who previously held an investment account in the Kingdom, to continue investing in main market stocks, even after their residency has expired.
Among the other regulatory changes introduced, the Capital Market Authority now allows investment fund units to be distributed through licensed digital platforms and fintech firms approved by the Saudi Central Bank.
New governance rules also require CMA approval and a 60-day transition period for fund manager changes to safeguard investors.
Additionally, REITs (Real Estate Investment Trusts) listed on Nomu, Saudi Arabia’s parallel stock market designed for small and medium-sized enterprises, have been granted greater flexibility to invest in development projects. This change allows REITs to move beyond the traditionally strict asset allocation limits, potentially boosting returns and attracting more investors to the market.
The move comes after the CMA opened a month-long public consultation in November 2024 to gather feedback on proposed reforms aimed at simplifying investment account procedures and broadening investor access.
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