Tadawul FAQs
Access to the Saudi Exchangewww.saudiexchange.saUntil recently, buying a Saudi stock as an American was somewhere between difficult and impossible. That ended on February 1, 2026, when the Capital Market Authority opened the Main Market to foreign investors. This page states the facts of access and answers the most common questions about the Saudi Exchange. TalonEdge KSA is a publication, not a broker or adviser: we do not tell you how or where to invest, which broker to use, or whether to buy anything at all. Those choices are entirely yours.
Saudi Stock Exchange FAQ
When is the Saudi stock market open in US time?
The Saudi Exchange trades Sunday through Thursday, 10:00 to 15:00 Riyadh time. That is 3:00 to 8:00 AM US Eastern and midnight to 5:00 AM US Pacific while US daylight saving is in effect, one hour later in winter. The entire Saudi trading week happens while most Americans sleep, which is why our daily brief is called While You Slept.
What currency do Saudi stocks trade in?
Saudi stocks price and settle in riyals (SAR). The riyal has been pegged to the US dollar at SAR 3.75 = $1 since 1986, so a US investor's currency risk on Saudi stocks has been essentially nil for four decades.
How do trades settle?
Saudi trades settle T+2, two business days after the transaction. Costs, commissions, and conversion practices vary by broker and are between each investor and their broker.
Is there a daily price limit on Saudi stocks?
Yes. Every Main Market stock has a daily price band of plus or minus 10% against the previous session close, which is the reference price for the day. A share cannot trade above or below that band during the session, which is why a strong day in Riyadh often ends with a cluster of names pinned at exactly 10.00%. The same band caps losses. Nomu runs a wider band, plus or minus 30%, and newly listed shares trade under an expanded band for their first sessions.
What are the foreign ownership limits?
In most Saudi companies, all foreign investors combined can own up to 49% of the shares, and no single foreign investor can hold more than 10%. Companies can set higher limits in their bylaws, and approved strategic investors can hold up to 100%. Foreigners currently hold roughly 4% of total Saudi market value, a fraction of typical emerging-market levels.
Do I owe Saudi tax on dividends?
Dividends paid to foreign investors can be subject to Saudi withholding tax, and US investors may be able to claim a credit under the US-Saudi tax treaty. TalonEdge KSA is not a tax adviser and cannot tell you what you owe; consult a qualified tax professional for your own situation.
What are TASI and Nomu?
TASI, the Tadawul All Share Index, tracks the 254 companies on the Saudi Main Market, the region's largest exchange. Nomu is the parallel market beside it: 122 smaller companies with lighter listing requirements and much thinner trading, where companies grow before some graduate to the Main Market.
Is any of this investment advice?
No. TalonEdge KSA is an independent publication, not a broker, dealer, or investment adviser. Nothing on this site is a recommendation to buy or sell any security, and no part of it is tax advice.