Saudi Arabia to Open Financial Market Doors to All Foreign Investors in February

01:02 AM EST, 01/07/2026 (MT Newswires) -- Saudi Arabia's financial watchdog will allow capital market access to all classes of foreigners from Feb. 1, in another push for greater liquidity and a broader investor base, according to a Tuesday release. The Capital Market Authority's amended regulatory framework removes the Qualified Foreign Investor concept, enabling non-residents to directly invest in shares listed in Saudi Arabia's main market. Before, foreign investors had to meet qualification requirements, like having at least $500 million in assets under management. The regulator also axed the framework governing swap agreements, which overseas investors used to obtain economic benefits like dividends and capital gains of listed securities without actually owning the underlying shares or being subject to the full Qualified Foreign Investor criteria. "These approved amendments align with the CMA's gradual approach to opening the market, building on previous phases and paving the way for complementary steps aimed at further opening the capital market," said the regulator. "The goal is to position the market as an international marketplace capable of attracting greater flows of foreign capital." The move is expected to attract more investments into the kingdom and diversify its investor base. By the end of the third quarter of 2025, international investors owned upwards of 590 billion riyals in the Saudi capital market and 519 billion riyals in the main market, up from 498 billion riyals in 2024. "Our index team calculates that [foreign ownership limit] increase from current 49% to 60-100% could attract $3.4-$10.2 [billion] of passive inflows from MSCI and FTSE index trackers," Jefferies said in an October 2025 report.