By Micah Jonah
January 7, 2026
Saudi Arabia plans to open its financial market to all foreign investors from February 1, a move aimed at attracting increased capital inflows, boosting liquidity as the kingdom presses ahead with economic reforms.
The decision follows amendments approved by the Capital Markets Authority (CMA), which remove the Qualified Foreign Investor framework. The previous rule restricted direct market access to selected international investors with specific eligibility requirements.
Under the new framework, investors from around the world will be able to invest directly in Saudi Arabia’s capital market. The CMA said the changes are expected to support foreign inflows and deepen market liquidity.
The oil rich nation, which is more than halfway through an ambitious plan to diversify its economy away from oil dependence, has intensified efforts to attract foreign investment. Recent initiatives include the establishment of exchange traded funds in partnership with Asian markets, such as Japan and Hong Kong.
Regulators last year also allowed foreign investors to buy shares in listed companies that own real estate in the holy cities of Mecca and Medina, while maintaining restrictions on direct land ownership.
Market analysts say the immediate impact of the reform may be modest, as most institutional investors already had access to the market under existing rules. However, expectations remain high around possible future changes to foreign ownership limits.
Saudi stocks rose sharply in September, following reports that authorities were considering easing the 49 percent cap on foreign ownership of listed firms, a move that could revive interest in the region’s largest stock exchange.
The Saudi benchmark index declined by 12.8 percent in 2025 and is down 1.9 percent so far this year, according to market data.
The latest reform signals Riyadh’s continued push to position its financial market as a more open, competitive destination for global investors.
