The S&P 500 is the world's most famous stock market index — and Saudi investors have never had easier access to it. This is your complete, step-by-step guide to investing in the S&P 500 from Saudi Arabia in 2026.

What is the S&P 500?

The Standard & Poor's 500 (S&P 500) is a stock market index that tracks the performance of 500 of the largest publicly traded companies in the United States. Companies are selected by a committee based on market capitalisation, liquidity, and sector representation, making the S&P 500 the most widely accepted benchmark for the overall health of the US economy.

You have almost certainly used products from S&P 500 companies today. Apple's iPhone. Google's search. Amazon's delivery. NVIDIA's chips powering everything from gaming to artificial intelligence. Microsoft's software. The S&P 500 is essentially a stake in the collective future of American and by extension, global corporate enterprise.

Since its creation in 1957, the S&P 500 has delivered an average annual return of approximately 10.5% per year, including dividends. If you had invested $10,000 in the S&P 500 thirty years ago and never touched it, that investment would be worth well over $150,000 today. Few asset classes in history have produced comparable long-run results.

Is It Legal for Saudi Citizens to Invest in the S&P 500?

Yes, absolutely. Saudi residents and citizens can legally invest in US-listed stocks and ETFs through regulated investment platforms. There is no restriction on GCC residents investing in foreign markets. The Saudi Capital Market Authority (CMA) eliminated the Qualified Foreign Investor (QFI) programme in January 2026, further opening investment flows. For accessing US markets from Saudi Arabia, you need a platform that is licensed in a recognised financial jurisdiction such as Raseed, which is registered and regulated by the DFSA in the Dubai International Financial Centre (DIFC).

3 Ways to Invest in the S&P 500 from Saudi Arabia

Option 1: Halal S&P 500 ETFs (Recommended for Most Investors)

An Exchange-Traded Fund (ETF) that tracks the S&P 500 is the simplest and most cost-effective way to gain broad US market exposure. You buy a single security that gives you proportional ownership across hundreds of companies simultaneously with no need to manage individual stock positions, rebalance quarterly, or monitor 500 separate companies.

For Muslim investors, it is important to note that the S&P 500 itself is not Shariah-compliant, it includes conventional banks, insurance companies, and businesses with prohibited activities. However, Shariah-screened alternatives exist, most notably SPUS (SP Funds S&P 500 Sharia Industry Exclusions ETF), which tracks a version of the S&P 500 with non-compliant companies excluded.

SPUS has delivered a compound annual growth rate (CAGR) of 16.91% since its December 2019 inception, actually outperforming the standard S&P 500 over the same period. Its expense ratio is 0.45%, and its top holdings include Apple, NVIDIA, Microsoft, Amazon, and Meta.

Option 2: Individual S&P 500 Stocks via Fractional Shares

Rather than buying the entire index, many investors prefer to hand-pick specific S&P 500 companies they want to own. Using fractional shares available on Raseed, you can invest in any S&P 500 company with as little as $1, regardless of how high the share price is. This lets you build a personalised portfolio of US companies aligned with your investment thesis and, where applicable, Shariah compliance preferences.

Option 3: Dollar-Cost Averaging into the Index

Instead of investing a lump sum, dollar-cost averaging (DCA) means investing a fixed amount for example, $100 per week or $500 per month into your chosen S&P 500 vehicle regardless of the current price. Over time, this strategy naturally buys more units when prices are low and fewer when prices are high, producing a lower average cost per unit than a lump sum timed to the market. Academic research consistently shows DCA outperforms attempts to time the market for most retail investors.

Read More - Best Halal Stocks to Buy in 2026: Top Shariah-Compliant Picks for Investors

Step-by-Step: How to Invest in the S&P 500 from Saudi Arabia

  1. Download the Raseed app on iOS or Android, or visit raseedinvest.com.

  2. Create your account by entering your email address and creating a password.

  3. Complete identity verification (KYC): upload your ID or passport and a selfie. This typically takes just a few minutes.

  4. Fund your account via bank transfer. Raseed supports deposits in SAR and USD.

  5. Browse stocks or ETFs Search for the halal S&P 500 ETF (SPUS) or individual stocks like Apple, NVIDIA, or Microsoft.

  6. Choose your investment amount as little as $1 for fractional shares or full ETF units.

  7. Select your order type (market order for immediate execution) and confirm your trade.

  8. Your investment is live. Track performance directly in the Raseed app.

What Does It Cost?

On Raseed, stock trades start from $0.50 per transaction, with a maximum cap of $3 per trade — one of the lowest fee structures available to retail investors in the GCC. This means whether you are investing $100 or $10,000 in a single trade, your maximum cost is $3. Options contracts are available from $0.99 per contract (minimum $1.49 per order).

Key Considerations Before You Invest

  • The S&P 500 can and does experience corrections, it fell 10% in early 2026, and fell nearly 20% in April 2025 before recovering fully. Short-term volatility is normal.

  • The S&P 500 is a US Dollar-denominated investment. Since the SAR is pegged to the USD, there is no currency risk for Saudi investors.

  • Consider your investment time horizon. Historically, the longer you hold a diversified S&P 500 position, the higher the probability of positive returns. Over any 15-year period since 1957, the S&P 500 has never produced a negative return.

  • If Shariah compliance matters to you, use a halal screening service like Musaffa or Zoya to verify individual stock compliance before investing, and consider SPUS as your primary index vehicle.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial advice. All investments carry risk. Past performance is not indicative of future results.