Posted on: 8th May 2026

Investing in the Saudi Stock Market: What You Need to Know

Saudi Arabia now welcomes international investors. Thanks to relaxed rules, it is easier than ever to access the country’s financial markets.

If you are thinking about investing in Saudi Arabia, knowing how the country’s stock market works is an important first step.

Keep reading to find out how the Saudi stock market works, why it is drawing interest from global investors, and how you can start investing in stocks.

About the Saudi stock market

The Saudi stock market is a marketplace where shares of publicly listed companies are traded.

Shares are listed and traded on Tadawul, Saudi Arabia's only stock exchange. It is a regulated platform for buying and selling company shares.

The role of Tadawul in Saudi Arabia

Tadawul is Saudi Arabia’s central platform for trading equities.

The exchange is the largest in the Middle East, with more than 230 publicly listed companies. The Capital Market Authority (CMA) regulates Tadawul, overseeing financial markets and making sure securities rules are followed.

In addition to its main market, Nomu is a parallel market designed for smaller companies and startups.

What is traded on the Saudi stock market?

There are several types of investments traded on the Tadawul stock exchange. Some of the key investments traded on the exchange are:

• Equities: Shares in publicly-listed companies and a range of Shariah-compliant investments.

• Fixed income: These include bonds and sukuk, a Shariah-compliant fixed-income product.

• Funds: Mutual funds and exchange-traded funds (ETFs) that make it easy to diversify your investment portfolio.

• Real Estate Investment Trusts (REITs): REITs are special funds that allow you to invest in real estate without buying physical property.

• Derivatives: These include futures contracts based on the MSCI Tadawul 30 Index (MT30).

Tadawul stock exchange: key sectors

The Tadawul stock exchange features companies from many different industries. Before investing, it's helpful to be aware of some key sectors you’ll find on the exchange.

Energy

Energy companies are central to Saudi Arabia’s economy, with oil, refining, and petrochemicals making up much of the market value. Saudi Aramco is the largest listed company by market cap.

Banking and finance

Saudi Arabia’s banking sector is one of the most advanced in the region. Leading banks like the Saudi National Bank (SNB) help fund businesses and major projects.

Telecommunications

Telecom companies offer mobile and data services to support digital growth.

Healthcare

Investment in healthcare facilities and systems is quickly expanding as part of Vision 2030.

Real estate

Saudi Arabia is investing over $1 trillion in real estate and infrastructure, including projects like NEOM and Red Sea Global, as part of Vision 2030.

Can foreigners invest in the Saudi Stock Exchange?

Previously, investing in the Saudi Exchange as a non-resident was not straightforward. You had to be approved, which meant a lot of documentation and a lot of money—investors needed $500 million in assets under management (AUM).

All of that has changed.

Saudi Arabia’s updated Investment Law took effect on 1 February 2026. This means non-residents can now invest directly in the Tadawul stock exchange and access the Saudi capital markets.

What has changed

• There is no application process to access the market

• You get direct access to shares listed on Tadawul

• Swap agreements have been scrapped

• You don’t have to meet a minimum investment threshold

Restrictions still in place

• Foreign investors cannot hold more than 10% of shares in a company

• Collective foreign investment in a company must not exceed 49%

It’s possible that these restrictions may be eased further in the future.

Why the Saudi Stock Exchange is attracting global investors

Tadawul is the largest stock exchange in the Middle East. By the end of 2025, the exchange had a market cap of about SAR 9 trillion ($2.4 trillion).

Recently, the Saudi Stock Exchange has caught the eye of more global investors. The Capital Market Authority (CMA) reported that by the end of Q3 2025, international investors held over SAR 590 billion ($157.3 billion) in Saudi equities.

The Saudi Exchange isn’t just about oil anymore. Thanks to Vision 2030, investors now have more choices.

Vision 2030 is a national plan to reduce Saudi Arabia’s reliance on oil by growing sectors like tech, tourism, and infrastructure.

A major financial force behind Vision 2030 is the Saudi Public Investment Fund (PIF). It funds projects in key sectors and manages a portfolio of over 220 companies.

So, what does this mean for you as an international investor?

The PIF boosts investor confidence and attracts private investment. This can help lower risk.

If you’re an investor, knowing where and how the PIF invests can help you find growth opportunities in Saudi Arabia. You can also invest in public companies that are part of the PIF’s portfolio.

Since 2017, the PIF’s portfolio has averaged a 7.2% annual return, compared to about 4.9% for the Tadawul All Shares Index.

Know the risks

Like other emerging markets, the Saudi stock market comes with some risks that investors should keep in mind.

Here are some of the main risks:

• Market volatility can cause price swings

• Oil prices can impact the wider economy

• Regulations, world events, and international trade can affect investments

Currency rate changes can affect international investors. Use our calculator below to convert one currency to another using the latest available exchange rates.

{Currency calculator here}

How to invest in stocks in Saudi Arabia

With the recent changes, investing in Saudi stocks as a foreigner is now similar to the process in most developed markets.

Simply put, to invest in the Saudi stock market, you open a brokerage account that gives you access to the Tadawul stock exchange. You can then use this account to buy and sell shares listed on the Saudi Exchange.

Here is the process step-by-step.

1. Choose a broker: Open an account with a licensed firm that provides access to the Saudi Stock Exchange.

2. Fund your account: You can deposit funds to purchase shares.

3. Pick investments: Choose options that align with your investment strategy and goals.

4. Place a trade: You can place buy or sell orders for shares listed on the Tadawul stock exchange.

Wrapping up

The Saudi stock market is changing quickly and is one of the most important financial markets in the Middle East.

Through the Tadawul stock exchange, investors can access many Saudi companies. With relaxed rules for foreign investors, investing in Saudi stocks is now easier than ever.

For more information about investing in Saudi Arabia, contact Holborn. Our experts can give you the guidance and tailored advice you need to reach your long-term financial goals.