DUBAI – Saudi Arabia will open its financial markets to all foreign investors from February 1, the kingdom’s market regulator announced on Tuesday, as part of efforts to relax regulations and draw greater overseas capital.
Reforms approved by the Capital Market Authority (CMA) remove the Qualified Foreign Investor framework, abolishing a system that previously limited direct market access to select international investors with established track records in Saudi assets.
Under the new rules, investors globally will be able to invest directly in the Saudi capital market, a move the CMA said would encourage inflows and enhance market liquidity.
The policy shift comes as Saudi Arabia presses ahead with its economic diversification strategy to reduce reliance on oil revenues, and steps up initiatives to attract foreign investment. These include launching exchange-traded funds with partners in Japan and Hong Kong.
Regulators last year also allowed foreigners to invest in listed companies that own property in Mecca and Medina, while maintaining restrictions on direct ownership of land in the holy cities. JP Morgan said it expected the immediate market impact of the latest changes to be modest, noting that most institutional investors already had access.
“The main regulatory development investors are watching is a revision to foreign ownership limits, which could provide a more meaningful boost to the market,” JPM said in a note, adding that such a change was unlikely before the second half of the year or later. Saudi equities surged in September after reports that the CMA was considering easing the 49% cap on foreign ownership of listed companies, a move seen as potentially reviving interest in the region’s largest stock market.
Saudi Arabia’s benchmark index fell 12.8% in 2025 and is down 1.9% so far this year, according to LSEG data.
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