Bloomberg: Saudi Capital Market Authority Explores Opening Market to Global Investors

Saudi Arabia’s Capital Market Authority (CMA) is considering opening its stock market to investors from around the world, marking a new step aimed at boosting market openness and attracting more foreign capital, the regulator told Bloomberg.

The CMA described its recent decision to allow residents of Gulf Cooperation Council (GCC) countries to directly trade Saudi stocks as a “logical and natural” move, reflecting the deep economic, social, and regulatory ties among the region’s countries. The authority also clarified that this privilege will remain available to GCC investors even after relocating outside the Gulf region.

In parallel, data from Bloomberg Intelligence showed that non-GCC foreign investors accounted for a record 35% of total stock purchases during the second quarter of 2025, underscoring growing international interest in the Saudi market.

As part of its ongoing efforts to stimulate the market, the Kingdom has diversified its pipeline of initial public offerings, attracted high-frequency trading firms, and eased several restrictions that previously hindered foreign investor access.

In July, shares listed on Saudi Arabia’s benchmark Tadawul All Share Index (TASI) were trading at a 32% discount compared to their counterparts on the MSCI ACWI Index, based on forward price-to-earnings ratios. This marked the lowest relative valuation since late 2016.

Sami Suzuki, Head of Emerging Markets Equities at AllianceBernstein, noted that these depressed valuations could serve as an additional incentive for foreign investors. He added that foreign activity has picked up noticeably since May and June, emphasizing the importance of closely monitoring even minor reforms that could enhance market liquidity and broaden the investable company universe.