Saudi Arabia to allow select foreign investors to buy shares on Tadawul All Share Index

Buying shares listed on the Tadawul All Share Index, the flagship index of the Saudi Exchange main market, will soon be possible for select foreign investors. Saudi Arabian Oil Co (Saudi Aramco) is one of the leading companies listed on the Tadawul All Share Index.

Saudi Arabia’s Capital Market Authority (CMA) has made it possible for international investors to invest in the stock market by opening up its major stock exchange to them.

The actual trading in stocks will begin soon, as the CMA has approved a set of amendments aimed at facilitating the Opening and Operation of Investment Accounts for various categories of investors.

However, this will be restricted to a specific set of foreign investors. Only individual overseas investors resident in one of the GCC countries will be permitted to invest in shares listed on the Main Market, providing them with a direct channel to invest in the Saudi capital market.

The Gulf Cooperation Council (GCC) countries comprise Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE.

The approved amendments will also allow individual foreign investors who previously resided in Saudi Arabia or one of the GCC countries to continue operating their investment accounts and invest in shares listed in the main market even after their residency has ended and they return to their home country, provided they have previously opened an investment account in the Kingdom.

GCC nationals and residents will be allowed for the first time to invest directly in the Main Market, without the use of intermediaries.

Previously, their participation was limited to the debt market and the derivatives market, while their ability to trade in the Main Market was limited to swap agreements as ultimate beneficiaries through capital market institutions or as clients of these institutions, where investment decisions are made on their behalf.

The main market is the flagship market of the Saudi Exchange. It hosts over 200 publicly traded companies and is one of the world’s largest stock markets.

The Saudi Exchange operates as a subsidiary of the Saudi Tadawul Group. The Tadawul All Share Index (TASI) tracks performance of all listed stocks on the Saudi Exchange main market.

As the largest (by market capitalization) and most liquid stock market in the MENA region , the Saudi Exchange offers investors an array of investment opportunities across a range of products and services.

One of the largest stock exchanges among the 67 members of the World Federation of Exchanges and 3rd largest stock market among emerging markets. It has 422 listed securities, between all Saudi Exchange platforms as of April 2024 with a Market Capitalization of US $2.87 trillion in April 2024.