Saudi Arabia will allow all foreign investors to directly access its financial markets starting February 1, as the kingdom moves to ease regulations and attract greater foreign capital, the Capital Markets Authority (CMA) announced on Tuesday.
Under the new amendments, the CMA has abolished the Qualified Foreign Investor (QFI) framework, removing restrictions that previously limited market access to select international investors with established links to the Saudi capital market. The regulator said the changes would encourage foreign inflows and enhance market liquidity.
The move comes as Saudi Arabia continues its ambitious economic transformation aimed at reducing reliance on oil revenues. In recent years, the kingdom has taken several steps to attract overseas investment, including launching exchange-traded funds in partnership with Asian markets such as Japan and Hong Kong.
Last year, regulators also allowed foreign investors to buy shares in listed companies that own real estate in Mecca and Medina, while maintaining restrictions on direct land ownership.
However, analysts expect the immediate impact of the latest move to be limited. JP Morgan said most institutional investors already had access to the Saudi market, adding that the key reform investors are awaiting is a revision of foreign ownership limits. The bank noted that any change to the current 49% cap on foreign ownership is unlikely before the second half of the year.
Saudi stocks surged in September following reports that the CMA was considering easing foreign ownership limits, a step seen as potentially reviving investor interest in the region’s largest stock market. Despite this, the Saudi benchmark index fell 12.8% last year and is down 1.9% so far this year, according to LSEG data.
Separately, Saudi Arabia has also approved the localisation of key procurement-related jobs in the private sector. The Ministry of Human Resources and Social Development said the move is part of broader efforts to empower national talent and expand employment opportunities for Saudi citizens.
