Address
Riyadh, Saudi Arabia
Can Non-Saudis Trade Saudi Stocks?
Yes. Since 1 February 2026, the Main Market has been open to all categories of foreign investors for direct investment, whether they live in Saudi Arabia or not, without having to meet the qualification requirements that applied before.
The Capital Market Authority (CMA) abolished the “Qualified Foreign Investor” concept in the Main Market, and with it the swap agreement framework that gave non-residents only the economic benefits of shares without owning them. Today a foreign investor can buy shares in their own name directly.
The main restriction that remains is the ownership cap: foreign investors combined may not own more than 49% of any listed company (excluding strategic investors), and the CMA has said it is moving to raise this cap.
How Did the Saudi Market Open to Foreign Investors?
Foreign investors’ access to the Saudi market came in stages over more than a decade:
| Stage | Date | What changed? |
|---|---|---|
| Residents and GCC nationals | Before 2015 | Direct investment through local portfolios |
| Qualified Foreign Investor (QFI) | 2015 | Large non-resident financial institutions allowed in under qualification conditions |
| Inclusion in emerging market indices | 2019 | Inflows from global index-tracking funds |
| Main Market opened to all foreigners | 1 February 2026 | Qualification and swaps abolished; direct investment for individuals and institutions |
Stock Trading for Residents and Non-Residents: What’s the Difference?
The difference today is in account opening procedures and documents, not in the right to trade itself:
| Resident in Saudi Arabia | Non-resident | |
|---|---|---|
| Main document | Valid Iqama (residence permit) | Passport and the broker’s know-your-customer requirements |
| Bank account | Account at a Saudi bank | Depends on the terms of the broker that accepts non-residents |
| Channel | Portfolio with a CMA-licensed capital market institution | Licensed broker that opens accounts for non-residents |
| Markets available | Main Market and traded funds | Main Market directly since February 2026 |
Steps to Start Trading as a Non-Saudi
- Choose a brokerage firm licensed by the CMA, and make sure it accepts clients in your category (resident or non-resident).
- Open the investment portfolio online or at a branch, and complete the identity verification and investment suitability forms.
- Transfer funds to the portfolio, keeping in mind that trading is in Saudi riyals.
- Start trading during market hours, Sunday to Thursday, from 10:00 a.m. to 3:00 p.m. Riyadh time.
An important note: investing in listed shares does not require a foreign investment license from the Ministry of Investment. That license is for anyone who wants to set up a business or company in the Kingdom, and it has entirely different conditions and fees from buying shares.
Where to Open Your Portfolio as a Non-Saudi
Brokerage firms differ in which categories of non-Saudis they accept and which markets they offer. Derayah Financial, for example, is a CMA-licensed firm that offers trading on the Saudi market, provides an onboarding route for foreign investors, and through its Derayah Global platform gives access to stocks and exchange-traded funds on other global exchanges. This is useful for a resident who wants to invest in the Saudi market and global markets with one provider. Before opening an account with any broker, check its terms for your category (resident or non-resident) and its full fee schedule.
Restrictions on Foreign Ownership of Saudi Shares
Individual investors rarely run into these restrictions, but it helps to know them:
- Cap on combined foreign ownership: 49% of the shares of any listed company, covering residents and non-residents together. If a company reaches this cap, buying more of its shares may not be possible.
- Cap per single foreign investor: a single foreign investor may not exceed a set percentage of one company’s shares unless they are a strategic investor.
- Sector restrictions: some companies have lower foreign ownership limits because of their activity or bylaws, such as companies that own property in Makkah and Madinah.
The CMA has said it is close to allowing foreigners to own stakes above 50% in listed companies, a step global investment banks expect to attract billions of dollars in inflows because it would raise Saudi stocks’ weight in emerging market indices.
Saudi Stock Trading Commission and Fees
The standard trading commission on Saudi stocks set by the CMA is 0.155% of the value of each buy or sell trade, or SAR 15.5 per SAR 10,000, plus 15% VAT on the commission only. The same rate applies to Saudis and non-Saudis, and to REITs and exchange-traded funds. Some brokers now offer discounted or zero commission on Saudi stocks, so compare fee schedules before choosing.
Example: at the standard rate, a SAR 10,000 buy trade costs about SAR 17.83 (15.5 commission + 2.33 VAT), and roughly the same when you sell. That means the share needs to rise about 0.36% to cover the cost of getting in and out.
Beyond the commission, some brokers charge other fees such as real-time price subscriptions or international transfer fees for non-residents, so ask for the full fee schedule before opening an account.
Taxes for Foreign Investors in Saudi Stocks
Non-resident investors have a 5% withholding tax deducted from the dividends they receive. Individual resident investors do not pay Saudi income tax on gains from their personal stock investments. Investors may also owe tax in their home country, which varies from country to country.
What Does the Market Opening Mean for the Saudi Economy?
Opening the market to all foreign investors is part of a broader effort to turn Riyadh into a regional financial center, one of the goals of the Financial Sector Development Program under Vision 2030. The idea is simple: a more diverse investor base means more liquidity, which makes it easier for Saudi companies to raise capital through IPOs and supports privatization plans and private sector growth.
The numbers reflect this trend. International investors’ holdings in the Saudi market reached about SAR 590 billion by the end of Q3 2025. In the week ending 25 September 2025, foreign investors from outside the GCC accounted for about 49% of Main Market purchases, overtaking Saudi investors for the first time.
On the other hand, a bigger foreign share means the market is more sensitive to global capital flows. When investor appetite for emerging markets shifts, Saudi stocks may move more sharply in either direction.
Frequently Asked Questions About Stock Trading for Non-Saudis
Can a resident open an investment portfolio in Saudi Arabia?
Yes. A resident can open an investment portfolio with a valid Iqama at any licensed brokerage firm and trade stocks and traded funds on almost the same terms.
Does a non-resident need to be a qualified investor?
No. The Qualified Foreign Investor concept in the Main Market was abolished from 1 February 2026, and non-resident individuals can now invest directly.
Is the commission different for non-Saudis?
No. The standard commission is the same for everyone (0.155% of the trade value). Differences come from discounts, extra fees charged by the broker, or currency conversion costs.
Can foreigners buy Aramco and Saudi bank shares?
Yes, within each company’s foreign ownership cap. Most large companies are far from the cap, but it’s best to check foreign ownership levels for the stock on the Saudi Exchange website before buying.
Conclusion
Stock trading for non-Saudis is not only possible, it has been direct for residents and non-residents alike since February 2026. What matters is choosing a licensed broker that accepts your category, understanding the commission and taxes that apply to you, and following any change to the foreign ownership cap, because it could move the whole market.
This content is for awareness purposes and is not investment or tax advice.
Sources
- Al Watan: CMA opens the market to all categories of foreign investors
- Okaz: International investor holdings and the market opening
- Okaz: Record foreign purchases and easing the ownership cap
- Al Eqtisadiah: Allowing foreigners to own majority stakes
- Capital Market Authority: Trading commission decision
[…] Yes, if you are a registered resident of the Kingdom, as the Saudi Exchange explains on its How to become an investor page. People living outside the Kingdom follow a different route, which we explain in our article on trading Saudi stocks as a non-Saudi. […]