Saudi Arabia to Open Financial Markets to Foreign Investors Starting February 1
DUBAI, Jan 6 (Reuters) – Saudi Arabia is set to make a significant move in opening up its financial markets to all foreign investors beginning on February 1, as announced by the country’s market regulator on Tuesday. The amendments approved by the Capital Markets Authority will eliminate the concept of the Qualified Foreign Investor, thereby allowing investors from around the world to invest directly in the Saudi capital market.
This decision marks a major shift in the country’s financial landscape, as it eases rules to attract more foreign capital. The move is expected to support inflows and improve market liquidity, ultimately contributing to the diversification of Saudi Arabia’s economy which aims to reduce its reliance on oil.
In recent years, Saudi Arabia has been actively working to attract foreign investors. This includes initiatives such as establishing exchange-traded funds with Asian partners in Japan and Hong Kong, as well as opening doors for foreigners to invest in listed firms that own real estate in Mecca and Medina. The country has also been exploring the possibility of easing rules restricting foreign ownership of listed companies, which saw a positive response from the market with a surge in Saudi stocks.
According to the Capital Markets Authority, international investors held 590 billion riyals ($157 billion) in the Saudi capital market at the end of the third quarter last year. This move to open up the financial markets further solidifies Saudi Arabia’s position as an attractive destination for foreign investment.
(Reporting by Federico Maccioni and Ahmed Elimam. Editing by Mark Potter)
