Saudi Market Access Opens to Global Capital From February
Saudi market access will expand from February 1. The Capital Markets Authority announced the decision on Tuesday. As a result, investors worldwide can enter directly.
The regulator removed limits that once restricted participation. Previously, only selected investors could trade. However, that system will soon end.
Officials say the change will strengthen confidence. It should also improve liquidity across the market. Therefore, Saudi Arabia expects higher foreign inflows.
New Rules End Qualified Investor Limits
The new framework removes the Qualified Foreign Investor category. That rule allowed access to selected institutions only. Now, anyone meeting basic requirements can invest.
This shift simplifies entry into the capital market. In addition, it aligns with global investment standards. Regulators believe the timing supports long term growth.
The authority stated the update supports stability. It also helps the market stay competitive. As a result, Saudi market access becomes more inclusive.
Economic Reforms Support Investment Growth
Saudi Arabia continues its push to reduce oil reliance. The country is now midway through its reform agenda. Therefore, attracting foreign capital remains a priority.
Earlier steps included partnerships with Asian exchanges. For example, Saudi Arabia launched exchange traded funds with Japan and Hong Kong. These efforts helped diversify investment sources.
Regulators also eased property investment rules last year. Foreigners can now buy shares in listed firms owning property in Mecca and Medina. However, direct land ownership remains restricted.
Market Reaction and Analyst Outlook
JP Morgan expects limited immediate impact. Analysts note most institutional investors already had access. Still, sentiment could improve over time.
Investors continue to watch ownership caps closely. Many expect future reforms on foreign ownership limits. However, analysts do not expect changes before late this year.
Saudi stocks rose sharply in September on reform expectations. Still, the benchmark index fell 12.8% last year. It remains slightly lower this year, according to LSEG data.
Alongside market reforms, Saudi Arabia approved job localisation. The policy targets procurement roles in the private sector. It aims to empower national talent.
Officials say the move supports employment growth. In addition, it strengthens workforce participation. These steps reflect a broader push for sustainable development.
