UAE and GCC residents can now directly invest in Saudi Arabia’s main stock market, Tadavul. world News
- Saudi Arabia now allows GCC residents to directly invest in their main stock market, Tadavul.
- Previously, Gulf investors could only reach the main market through indirect swap agreements.
- The new rules continued investing after the resurrection to the residents of Saudi and GCC countries.
- Corrections are part of the extensive vision 2030 attempts to attract foreign investment and modernize markets.
- The Saudi Arabia leads the Gulf in the size and trading activity of the stock market, with trading in $ 183.5B H1 2025.
New market access to GCC investors
Saudi Arabia is taking another bold step in its long -term plan to change its economy and financial markets. In a major regulatory change, residents of the Gulf Cooperation Council (GCC) countries are now allowed to invest directly in the state’s main stock exchange, Tadavul. This decision is part of a comprehensive strategy to modernize Saudi Arabia’s capital markets, increase foreign investor participation and align its ambitious vision 2030 economic change program. Till now, access to Saudi Arabia’s main stock market by GCC residents was quite banned. This update changes the rules of engagement for regional investors and creates a range of recent reforms aimed at creating more competitive and transparent investment environment in the state.
Extended access to GCC residents for Tadavul
Earlier, residents of the six -member Gulf Cooperation Council (GCC), including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE, could not trade directly in Saudi Arabia’s main stock market, Tadavul. His investment activity was banned:
- Debt market
- Parallel market (NOMU)
- Investment fund
- Derivative market
If they wish to reach the main market, they can only do this through smooth swap agreements by capital market institutions. These agreements made him the final beneficiary, but investment decisions were made by these institutions on their behalf, which limited investors autonomy and transparency. Under the new approved rules, GCC residents can now trade directly into the equity listed on Tadavul main market, provide them full control over investment decisions and improve their participation in the region’s largest stock exchange.
Widespread reforms supporting investment flexibility
Improvements are only beyond GCC participation. According to Saudi Arabia’s Capital Market Authority (CMA):
- Individual foreign investors who were earlier residents in Saudi Arabia or other GCC countries are now allowed to continue investing in listed equity even after the end of their residence situation. This provision expands investor rights beyond the period of their physical presence in the field.
- All types of customers dealing with capital market institutes have been simplified the processes of opening and operating investment accounts. This includes institutional, and foreign investors, which aim to eliminate bureaucracy and is ease of trading in Saudi markets.
These regulatory changes “stems to facilitate and facilitate procedures for opening of investment accounts for various categories of investors and facilitate procedures to operate,” which was published on 20 November 2024 by CMA. It was opened for public consultation for 30 calendar days: through:
- Integrated Electronic Forum to consult public and government institutions affiliated to the National Competition Center
- CMA official website
Update rules reflect the response received during this counseling phase and make a part of a large regulatory overhaul to modernize the state capital market structure.
Integration with Vision 2030 goals
The decision to open Tadavul main market for GCC residents has been launched in 2016 by Crown Prince Mohammed bin Salman with the national strategy of Saudi Arabia, Saudi Arabia. Vision wants 2030:
- Economy away from oil
- Promote private sector participation
- Employment rate improvement, especially between Saudi citizens
- Increase female participation in workforce
- Attract foreign direct investment
Over the years, Saudi Arabia has made several legislative reforms to attract global investors, including:
- A new companies launch law and civil transactions law
- Increase in investment fund regulations
- New real estate rules allow foreigners to buy property in specified areas of Riyadh and Jeddah, with special conditions for Mecca and Medina
These reforms indicate the desire of Saudi Arabia to liberalize those regions that were ever prohibited from property and financial markets to encourage capital flow and economic growth.
A more open financial and residence structure
The state efforts to attract capital have also been reinforced through its premium residency program, also known as Saudi Green Card. Launched in 2019, the initiative allows qualified foreigners to live, work and invest in Saudi Arabia, without the need of a local sponsor (caffel), a major departure from the traditional Gulf sponsor model. These residence reforms, in association with a change in real estate ownership laws for GCC citizens, support more integrated and flexible regional investment environment. Gulf Nationals can now engage in ownership of cross -border assets for both investment and residential objectives, closely align with market reforms.
Largest stock market in Gulf
Saudi Arabia is home to the largest stock exchange in the Gulf region, with more than 150 listed companies and the total GCC is commanding more than 40% of market capitalization. The Saudi Exchange (Tadavul) also offers investors wide risk for major sectors, especially financial services and energy.According to data from Saudi Financial News Platform, Areham, the Kingdom recorded $ 183.5 billion in the trading value in the first half of 2025, a figure that exceeds its regional counterparts so far:
- Abu Dhabi – $ 48.9 billion
- Bahrain – $ 1.24 billion
These figures outline the major role of Saudi Arabia in regional capital markets, making its recent regulatory reforms even more important for Gulf Economic Investors and the sector’s comprehensive economic integration.
