In a landmark financial reform, Saudi Arabia’s Capital Markets Authority (CMA) announced Tuesday that the kingdom will fully open its financial markets to all foreign investors effective February 1, 2026. This decisive move eliminates the previous Qualified Foreign Investor framework that restricted direct market access to specific institutional investors.
The regulatory overhaul represents the most significant opening of Saudi Arabia’s capital markets to date, allowing international investors worldwide to participate directly in the Middle East’s largest stock exchange. CMA officials stated the reforms are designed to stimulate substantial foreign capital inflows and enhance overall market liquidity.
This development accelerates Saudi Arabia’s Vision 2030 economic diversification initiative, which aims to reduce the kingdom’s traditional dependence on oil revenues. The market opening follows several strategic moves to attract international investment, including the establishment of exchange-traded funds with Asian financial hubs in Japan and Hong Kong.
Recent years have seen gradual financial liberalization measures, including last year’s regulatory change permitting foreign ownership of listed companies holding real estate in the holy cities of Mecca and Medina, while maintaining restrictions on direct land ownership. Saudi stocks previously surged in September 2025 on speculation of impending foreign ownership rule relaxations.
According to CMA data, international investors already held approximately 590 billion riyals ($157 billion) in Saudi capital markets by the conclusion of the third quarter last year, demonstrating substantial existing foreign interest despite previous restrictions. The February opening is expected to significantly expand this foreign participation.