The Saudi Exchange — formerly known as Tadawul — is the Middle East and North Africa’s largest stock exchange by market capitalisation. With Saudi Aramco alone representing one of the world’s most valuable publicly listed companies, and Vision 2030 driving a wave of privatisations and listings, the Saudi Exchange is an increasingly important destination for international investors. This guide covers how to invest in Saudi stocks in 2026.
Saudi Exchange — Key Facts
- Full name: Saudi Exchange (operating entity of Tadawul Group)
- Location: Riyadh, Saudi Arabia
- Currency: Saudi Riyal (SAR), pegged to USD at 3.75
- Market cap: Among the world’s top 10 exchanges — Saudi Aramco alone carries a market capitalisation of approximately USD 1.8–2 trillion
- Trading hours: Sunday to Thursday, 10:00 AM to 3:00 PM (Saudi time)
- Main index: TASI (Tadawul All Share Index)
- Secondary index: Nomu (parallel market for smaller companies)
MSCI Inclusion — Why International Investors Care
Saudi Arabia was included in the MSCI Emerging Markets Index in 2019, the FTSE Russell Emerging Markets Index, and the S&P Dow Jones Emerging Markets Index — all in 2018–2019. This inclusion triggered significant passive fund inflows as global index-tracking funds were required to buy Saudi stocks proportional to their weighting. Saudi Arabia’s weighting in MSCI EM has grown over subsequent years, making the Saudi Exchange a material allocation for any global emerging market investor.
How Foreign Investors Can Trade Saudi Stocks
Qualified Foreign Investor (QFI) Programme
Non-Saudi investors access the Saudi Exchange primarily through the Qualified Foreign Investor (QFI) programme, regulated by the Capital Market Authority (CMA):
- Institution eligibility: Financial institutions with AUM of at least USD 500 million (or SAR 1.875 billion) — banks, investment firms, insurance companies, collective investment funds
- Application: Apply through a licensed Saudi broker who sponsors your QFI status with the CMA
- Ownership limits: A single QFI may not own more than 10% of any listed company; all foreign investors combined may not exceed 49% of any listed company (with specific exceptions)
Saudi ETFs and Foreign-Listed Instruments
For individual retail investors outside Saudi Arabia who cannot qualify as a QFI, access is available through:
- ETFs tracking the Saudi market listed on international exchanges (e.g., iShares MSCI Saudi Arabia ETF, Franklin FTSE Saudi Arabia ETF)
- Certificates and structured products offered by international banks referencing Saudi indices
- Investment funds with Saudi equity mandates offered by international asset managers
Major Listed Companies — Saudi Exchange 2026
- Saudi Aramco (2222.SE): World’s largest oil company; IPO in 2019 raised USD 25.6 billion — the largest IPO in history at the time
- Saudi National Bank (SNB): Largest bank in Saudi Arabia by assets
- Al Rajhi Bank: World’s largest Islamic bank by assets
- Saudi Basic Industries Corp (SABIC): Petrochemical and specialty chemical giant (majority-owned by Aramco)
- stc (Saudi Telecom): Saudi Arabia’s largest telecommunications provider
- Riyad Bank, Banque Saudi Fransi, Arab National Bank: Major financial sector listings
Vision 2030 and the IPO Pipeline
Vision 2030 includes an explicit target to develop the Saudi capital market, increase the number of listed companies, and drive privatisation of state-owned enterprises. This has created a sustained IPO pipeline:
- Saudi Aramco subsidiary listings (chemicals, retail, services businesses)
- Government-owned entities across healthcare, utilities, and entertainment
- Private Saudi family businesses seeking capital market funding
Risks to Consider
- Oil price sensitivity: Saudi market valuations and government revenues are significantly correlated with global oil prices
- Single-sector concentration: Energy and financial sectors dominate the index by weight
- Political and regulatory risk: As with all emerging markets, policy changes can be swift
- Currency: SAR is pegged to the USD, eliminating exchange rate risk for USD-denominated investors — but creating risk if the peg were ever to change
Frequently Asked Questions
Can I buy Saudi Aramco shares as an individual from outside Saudi Arabia?
Yes — Saudi Aramco is listed on the Saudi Exchange, and individual international investors can access it through Saudi-listed ETFs, international funds, or through a QFI-eligible broker if you qualify institutionally.
What is the Nomu market?
Nomu is Saudi Exchange’s parallel market for smaller and emerging companies with lighter listing requirements than the main TASI market. It targets companies that are not yet ready for the full main market listing but wish to access public capital. Foreign investors can access Nomu through the QFI channel.
Does Saudi Arabia have capital gains tax?
Saudi individuals are exempt from personal income tax and therefore there is no capital gains tax for Saudi nationals on stock investments. Foreign investors are subject to Saudi withholding tax on dividends (0.15% CMA fee per transaction on the exchange side; tax treatment of gains and dividends in your home country may apply separately).
Related Reading
- Working in Saudi Arabia 2026
- Cost of Living in the UAE for Comparison
- Riyadh vs Jeddah 2026: Which City Is Better for Expats?
Also Read: Riyadh vs Jeddah 2026: Which Saudi City Is Better for Expats? | Saudi Arabia Corporate Tax 2026: Income Tax, Zakat, VAT and Special Zone Incentives Explained | Saudi Arabia Real Estate 2026: Riyadh and Jeddah Property Prices, Buyer Rules and New Projects
