Al-Quwaiz suggests reviewing foreign ownership next

Mohammed Al-Quwaiz, Chairman of the Capital Market Authority (CMA), said that after canceling the Qualified Foreign Investor (QFI) system and opening the main market (TASI) to all non-resident foreign investors, the next step will be reviewing foreign ownership limits, currently set at 10% per investor and 49% in total for all foreign ownership.

Speaking at the Private Capital Forum (PCF) 2025, Al-Quwaiz noted that these limits are the last remaining restrictions for international investors.

He explained that recent IPOs have seen lower allocations for retail investors, which reduced their demand and caused volatility in the secondary market. This has led the Authority to hold talks with companies planning IPOs to increase retail investor allocations.

Al-Quwaiz added that when retail demand is better absorbed during IPOs, secondary market volatility decreases, leading to more efficient pricing and faster market balance.

He highlighted that Saudi Arabia’s asset management industry has grown by nearly 20% annually over the past five years, with assets under management now exceeding SAR 1.2 trillion.

He noted that growth has been strongest in real estate, along with venture capital and private equity, which have expanded more than tenfold in the same period.

Al-Quwaiz also mentioned that more venture-backed startups are considering moving their headquarters to Saudi Arabia to become local companies and benefit from the Kingdom’s economy and financial market.