Image Source: The Wall Street Journal
Saudi Arabia’s Capital Market Authority has announced a landmark decision to open its financial markets to all categories of foreign investors starting February 1, 2026. The move eliminates long-standing restrictions, aiming to boost liquidity, attract global capital, and support the Kingdom’s economic diversification strategy.
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In a significant step toward financial liberalization, Saudi Arabia has removed barriers that previously limited foreign participation in its capital markets. The Capital Market Authority (CMA) confirmed that the new rules will take effect from February 1, 2026, allowing investors worldwide direct access to the Tadawul exchange.
Key Highlights:
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Foreign investors will no longer need to meet the Qualified Foreign Investor (QFI) requirements, which demanded minimum assets under management of $500 million.
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The reform is expected to deepen market liquidity and broaden participation, strengthening Saudi Arabia’s position as the Middle East’s largest equity market.
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This decision aligns with Vision 2030, the Kingdom’s long-term plan to reduce reliance on oil revenues and diversify its economy.
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Saudi Arabia has already taken steps to attract international capital, including partnerships for exchange-traded funds with Japan and Hong Kong.
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Analysts suggest the move could significantly increase foreign inflows, supporting fiscal stability amid budgetary pressures from lower oil revenues.
Sources: Reuters, Arabian Business, Investing.com
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