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GCC expats can now invest directly in Saudi main market

14/07/2025 04:18 AST

Residents of Gulf Cooperation Council countries, including expatriates, can now directly invest in Saudi Arabia's main stock market for the first time, under new regulations announced by the Capital Market Authority.

The reform, unveiled by CMA Chairman Mohammed El-Kuwaiz, removes previous restrictions that limited access to swap agreements or required investors to go through licensed intermediaries. It applies to current and former residents of Saudi Arabia or other GCC states, according to an official announcement.

The initiatives align with the Kingdom's economic diversification goals under Vision 2030, which seeks to deepen capital markets and attract global capital. By streamlining account openings and broadening access, the CMA aims to enhance liquidity, transparency, and investor confidence.

In a post on X, El-Kuwaiz said the move "promotes the openness of the market internationally, while at the same time building a long-term investment relationship with wider segments of investors around the world, within the framework of a more flexible and attractive regulatory environment."

In a separate statement, the CMA said the updates would "enhance the attractiveness of the Saudi capital market for local and international investors, increase the level of investor protection, and strengthen the confidence of market participants."

The amendments were approved following the CMA's publication of the draft on Nov. 20, 2024, titled "Facilitating the Procedures for Opening and Operating Investment Accounts for Various Categories of Investors."

The draft was open for public consultation for 30 calendar days via the Unified Electronic Platform for Consulting the Public and Government Entities, affiliated with the National Competitiveness Centre, and the CMA's website.

The GCC investor expansion is part of a wider regulatory overhaul unveiled by the CMA last week to modernize Saudi Arabia's investment fund landscape.

Key reforms included expanded distribution channels, allowing investment fund units to be distributed through licensed digital platforms and fintech firms approved by the Saudi Central Bank.

Stronger governance measures have also been introduced, including new safeguards for fund manager transitions, which require CMA approval and a 60-day handover period to protect investors.

REITs listed on the parallel market now have greater flexibility, as they can invest in development projects without strict asset allocation limits, potentially enhancing returns.

The latest regulatory changes represent another strategic step to deepen liquidity, attract foreign capital, and position the Saudi Exchange as a leading money market in the region.