Saudi Arabia Launches Offshore Securities License Expanding Foreign Investor Access

Saudi Arabia is actively enhancing its economic diversification and investment environment through initiatives like the Standard Incentives for the Industrial Sector, which supports innovative projects and offers up to 35% of initial investment to boost industrial capacity and self-sufficiency. Concurrently, the Saudi Capital Market Authority (CMA) is expanding foreign investor access by proposing and launching an offshore securities business license that allows licensed institutions to conduct securities activities and manage investment funds without the usual restrictions, thus broadening the client base to include sovereign funds such as the Public Investment Fund. This new license represents a further liberalization beyond the Qualified Foreign Investor (QFI) program introduced in 2015, which initially provided direct market access and has since seen eased restrictions and increased foreign holdings to over SAR 423 billion by the end of 2024. The CMA’s reforms, including permitting foreign ownership in companies with real estate in Makkah and Madinah, have made the Saudi capital market more transparent and credible, contributing to its inclusion in global emerging market indices and attracting substantial international capital. These efforts collectively align with Saudi Vision 2030 to position the Kingdom as a competitive manufacturing hub and an open, attractive market for global investors. The continued regulatory enhancements and incentive programs underscore Saudi Arabia's commitment to unlocking new investment horizons and fostering a diversified, sustainable economy.