On 1 February 2026, Saudi Arabia removed one of the biggest barriers facing foreign investors. The Capital Market Authority (CMA) opened the Saudi Exchange's Main Market to all categories of foreign investors, including nonresident individuals, without requiring the Qualified Foreign Investor (QFI) status previously reserved for eligible institutions.
The reform opened a market that already held SAR 519 billion in international investment at the end of September 2025, according to the CMA. Foreign individuals can now buy Saudi-listed shares directly through an authorized intermediary, subject to remaining ownership restrictions and brokerage requirements.
For investors wondering how to buy Saudi stocks as a foreigner, the process now resembles investing in many other international markets: select a broker offering Tadawul access, verify your identity, fund an account and place an order. The rules still contain important distinctions between Saudi Arabia's Main Market, its Parallel Market and international ETFs holding Saudi equities.
Can Foreigners Buy Saudi Stocks Directly in 2026?
Before February 2026, nonresident investors generally needed to qualify under specific access arrangements to purchase Main Market shares directly. Large institutions could use the QFI framework, while swap agreements provided another route to economic exposure.
The CMA's January 2026 announcement eliminated the QFI classification and the separate regulatory framework for swap agreements. Foreign individuals and institutions, whether resident in Saudi Arabia or elsewhere, can now participate directly in the Main Market.
The change does not eliminate all restrictions. The Saudi Exchange generally limits ownership by a single foreign investor, other than a foreign strategic investor, to less than 10% of a listed company. Aggregate foreign ownership is generally capped at 49%, excluding qualifying strategic investors. Company-specific and sector restrictions may also apply.
Access to Nomu, Saudi Arabia's Parallel Market for smaller companies, remains subject to qualified-investor requirements. Foreigners who can buy Main Market shares are therefore not automatically eligible to trade every Saudi-listed security.
For broader developments in market access and regulation, Nukoud's Saudi Arabia market coverage tracks changes affecting local and international investors.
Three Ways Foreign Investors Can Access Tadawul
Investors can buy Saudi securities through a local brokerage, an international intermediary providing direct market access, or an exchange-traded fund (ETF) offering Saudi equity exposure.
Direct ownership allows investors to select companies such as Saudi Aramco, Al Rajhi Bank and stc. ETFs spread exposure across multiple holdings, although their portfolios may remain concentrated in a handful of sectors.
Nukoud's beginner's guide to Tadawul ETFs explains how listed funds provide access to Saudi equities, along with the liquidity and concentration risks involved.
How to Buy Saudi Stocks as a Foreigner: Step by Step
1. Choose a Broker Offering Saudi Exchange Access
Start by confirming that the brokerage supports direct trading on Tadawul for investors in your country of residence. Regulatory eligibility does not guarantee that every brokerage will onboard every foreign customer.
Interactive Brokers offers one international route through its partnership with SNB Capital, announced in October 2024. Its platform allows eligible clients to access Saudi shares, real estate investment trusts (REITs) and locally listed ETFs alongside securities from other markets.
Investors can also explore Saudi-licensed brokers, provided those firms accept their residency and documentation.
2. Open an Investment Account and Complete Verification
The broker will request identity information and conduct anti-money-laundering checks. A nonresident individual should expect to provide a valid passport, residential details and information about the source of investment funds.
Depending on the intermediary, additional tax-residency declarations or account documentation may be required. Saudi Exchange guidance confirms that nonresident investors can be onboarded digitally or physically through a custodian responsible for verifying their eligibility.
3. Activate Tadawul Trading Permissions
International brokers may require clients to enable Saudi market access separately.
Interactive Brokers, for example, instructs clients to open account settings, select trading permissions, add Saudi Arabia under stock markets and acknowledge the relevant agreements. The firm says permissions are typically approved within 24 hours, although individual requests may take longer.
Confirm that the specific security is available before transferring money solely to purchase it.
4. Fund the Account and Find the Stock
Saudi equities trade in Saudi riyals (SAR). Investors funding accounts in dollars, euros or another currency should check exchange rates, conversion charges and settlement arrangements.
The riyal's peg to the US dollar limits exchange-rate fluctuations against the dollar under the existing currency regime. Investors using currencies such as the euro or pound remain exposed to movements against the dollar.
Once funded, search for the company's name or Saudi Exchange ticker. Review its financial statements, valuation, liquidity and applicable foreign ownership limits before placing an order.
5. Place the Order and Review Settlement
The Saudi Exchange operates Sunday through Thursday, with continuous equity trading from 10:00 to 15:00 Saudi time. The opening auction begins at 09:30, while equity closing and trade-at-last sessions follow regular trading.
A limit order specifies the maximum price an investor will pay and can reduce unexpected execution costs when liquidity is thin. The Saudi Exchange uses a T+2 settlement cycle, meaning the transaction normally settles two business days after execution.
How Much Does It Cost to Buy Saudi Stocks?
Buying Saudi shares involves brokerage charges, trading costs and potentially currency conversion or custody fees.
The Saudi Exchange's market overview lists a total trading commission of 15.5 basis points for equities and ETFs, equivalent to SAR 15.50 on a SAR 10,000 transaction. Investors should confirm their broker's applicable fee schedule and any additional charges or taxes.
A single Saudi share is the standard minimum trading lot on the Main Market, although intermediaries may impose their own order or account requirements. The amount needed to begin investing therefore depends on the share price and the chosen broker.
Dividend taxation also requires attention. Saudi-source distributions to nonresident investors may face withholding depending on the investor, issuer and applicable rules. Tax obligations in an investor's country of residence can create additional reporting requirements.
Saudi Stocks or Saudi ETFs: Which Offers Better Exposure?
Individual Saudi stocks give investors control over the companies they own but introduce substantial company-specific risk. A portfolio concentrated in Saudi Aramco, for example, carries direct exposure to the oil producer's earnings, distributions and valuation.
Saudi ETFs offer another approach. Funds tracking broader indices can hold banks, industrial companies and consumer businesses alongside energy exposure. Investors should still examine concentration, because buying a Saudi equity index does not necessarily produce a globally diversified portfolio.
For those investing through international markets, Saudi-focused ETFs may offer access without opening a Saudi trading account. However, the fund's domicile, currency, fees and distribution policy can produce different outcomes from owning local shares.
Nukoud's ETF Screener allows investors to filter funds across Saudi Arabia and other markets and compare characteristics before investing.
What Foreign Investors Should Check Before Buying
The Saudi market's opening removes a regulatory hurdle, but investment risk remains. Banks, energy companies and materials producers account for substantial portions of Saudi equity exposure, linking returns to interest rates, oil prices and domestic economic activity.
Trading costs can also affect smaller portfolios. Investors planning regular purchases should compare commissions and spreads against their intended investment size. Nukoud's low-cost ETF portfolio guide examines how fees influence long-term investment costs.
Market volatility is another consideration. Buying several times over an extended period spreads entry prices, although it cannot prevent losses. Nukoud's guide to dollar-cost averaging in GCC stocks explains the trade-off between gradual investing and deploying capital immediately.
Frequently Asked Questions
1. Can nonresident foreigners buy Saudi stocks directly?
Yes. Since 1 February 2026, foreign individuals and institutions can access the Saudi Main Market directly through eligible intermediaries, regardless of whether they reside in Saudi Arabia. Broker onboarding, foreign ownership limits and other applicable restrictions remain relevant.
2. Do foreign investors still need Qualified Foreign Investor status?
No. The CMA abolished the QFI framework for Main Market access in February 2026. Foreign individuals no longer need to meet the former qualification requirements to invest directly in Main Market shares. Nomu continues to have separate qualified-investor rules.
3. What is the minimum amount needed to invest in Tadawul?
The standard minimum lot for Saudi Main Market shares is one share. The practical minimum depends on the company's share price, trading charges and any broker-specific account or transaction minimums.
4. Can I buy Saudi stocks from the UAE, UK or United States?
Saudi regulations permit nonresident foreign individuals to invest directly in the Main Market. Actual access depends on whether a broker accepts clients from the investor's jurisdiction and offers the relevant Tadawul securities. Interactive Brokers is one example of an international broker providing Saudi Exchange access to eligible clients.
Foreign investors should confirm their broker's current market permissions, applicable ownership restrictions and settlement arrangements before funding an account. Access to Saudi shares has widened, but the securities available to an individual investor still depend on the account through which they trade.
