A New Chapter in GCC Investment: Saudi Arabia's Stock Market Now Open to Regional Residents

 

Saudi Arabia has taken a major step toward regional financial integration. From February 2025, the Kingdom’s stock market, Tadawul, is open not just to GCC citizens but also to residents of the Gulf Cooperation Council (GCC) countries, including the UAE, Qatar, Bahrain, Kuwait, and Oman.Oman. 
 
This historic change, driven by the new Investment Law and updates from the Capital Market Authority (CMA), marks a significant milestone in Saudi Arabia’s Vision 2030 economic transformation. 

- What Has Changed? 

Previously, only GCC citizens could invest directly in Tadawul, while residents needed to navigate the Qualified Foreign Investor (QFI) program or use indirect investment channels. The new rules now allow: 

  • Direct investment in listed and unlisted Saudi companies 
  • Equal opportunities for individual and institutional investors living in GCC states 
  • Elimination of swap agreements or QFI requirements (if funds are sourced within the GCC) 

This opens the door for UAE-based portfolio managers, regional mutual funds, family offices, and expatriate professionals to participate without complex intermediaries. It also opens up opportunities for investors looking for company formation in the KSA. 

- Why This Matters? 

Tadawul is the largest and most liquid exchange in the Middle East, with a market capitalization exceeding SAR 9 trillion (USD 2.4 trillion). The reform will: 

  • Deepen economic ties between GCC countries 
  • Support IPOs, REITs, and startups with wider investor bases 
  • Increase regional liquidity and diversification 
  • Strengthen Riyadh’s role as the Gulf’s financial hub 

- The New Investment Law: Key Provisions 

The updated Investment Law provides a unified and investor-friendly framework: 

  • Equal treatment for foreign and local investors 
  • Freedom to repatriate capital and profits 
  • Legal protections for intellectual property and against indirect expropriation 

- Simplified Setup & Registration 

To invest or establish a company in Saudi Arabia, investors will need certified commercial documents, audited financial statements, and board resolutions, plus registrations with: 

  • General Authority of Zakat and Tax 
  • Ministry of Human Resources and Social Development 
  • General Organization for Social Insurance 

- CMA’s Digital & Market Enhancements 

The CMA is modernizing investor access with: 

  • Simplified account opening 
  • Digital channels for fund distribution 
  • Updated REIT regulations 
  • Flexible transition periods for fund management changes 

- Opportunities & Exclusions 

GCC residents can now access IPOs, secondary market trading, REITs, private equity, and venture capital, with the same investor protections as citizens. However, some prohibited and restricted activities still require ministerial approval or additional compliance. 

- Why Now? 

The reform aligns with Vision 2030 goals to diversify the economy, attract regional capital, and mobilize funds for key sectors like tourism, logistics, and renewable energy. It also signals stronger investor confidence in Saudi governance and regulatory oversight. 

- Bottom line 

GCC investors now have a direct, simplified, and transparent route to the region’s most dynamic stock market. For those considering business setup in Saudi Arabia, the moment is ripe. 

Read the full analysis and compliance details on our website blog. 

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