Saudi Arabia Opens Capital Market to All Foreign Investors

Saudi Arabia's Capital Market Authority removed qualification requirements for foreign investors and will allow non-residents to invest directly in the main market from Feb. 1, the regulator said.

Saudi Arabia's regulator has removed qualification requirements that previously limited which foreign investors could trade on the main equities market. The Capital Market Authority said it eliminated the Qualified Foreign Investor (QFI) concept and removed criteria such as a $500 million assets-under-management threshold. The change allows non-residents to invest directly in the main Saudi market from Feb. 1. Authorities have presented the move as part of broader reforms to boost inflows after the market underperformed last year. Key facts: - The Capital Market Authority announced the elimination of the Qualified Foreign Investor (QFI) concept for the Main Market. - Previously some foreign investors had to meet minimum qualifications, including a reported $500 million assets-under-management requirement. - The regulator said non-residents will be able to invest directly in the main Saudi market starting Feb. 1. - The Tadawul All Share Index fell nearly 13% last year, and officials have cited a need for foreign inflows amid higher spending and lower oil revenues. - Market research cited in the coverage noted that raising foreign ownership limits could attract passive inflows; Jefferies estimated a 60–100% ownership limit might draw an estimated $3.4 billion–$10.2 billion from index trackers. Summary: The regulator's amendment opens the main Saudi equity market to all foreign investors and sets Feb. 1 as the date for direct non-resident investment. The decision follows a series of market reforms aimed at reviving a benchmark that dropped nearly 13% last year. Whether authorities will change foreign ownership caps further is undetermined at this time.