Key Developments in Saudi Capital Markets
Saudi Arabia's Capital Market Authority (CMA) has announced plans to eliminate Qualified Foreign Investor (QFI) requirements, paving the way for all foreign investors to access its financial markets starting in February 2026.
This significant policy shift is a key component of Saudi Arabia's Vision 2030, aimed at substantially increasing foreign investments and diversifying the nation's economy. Initial market reactions to this announcement have been positive.
Direct Foreign Investment and Vision 2030
The Capital Market Authority will permit direct foreign investment in its Main Market, effectively removing the Qualified Foreign Investor (QFI) requirement beginning February 2026. This transition is a direct reflection of the objectives outlined in Vision 2030.
Khalid Al-Falih, Saudi Arabia's Minister of Investment, highlighted broader economic transformations during a recent Saudi-Japanese forum. The CMA's strategic goal is to enhance market liquidity and attract substantial international capital flows into the country.
"We are unlocking our markets for a broader foreign investment base, enhancing liquidity and aligning with Vision 2030." - Khalid Al-Falih, Minister of Investment, Saudi Arabia
Market Impact and International Ownership
The news of this regulatory shift coincided with a notable surge in Saudi equities, which jumped nearly 3% on January 7, 2026. This development contributed to an increase in international ownership of Saudi equities, reaching SAR 590 billion by late 2025.
Alignment with Liberalization Efforts
The opening of financial markets is consistent with ongoing liberalization efforts across various sectors. This includes changes related to non-resident real estate ownership, which became effective in January 2026. The Kingdom is actively working to enhance its appeal to global investors.
Future Economic Outlook
The anticipated outcomes of this policy change include increased foreign capital inflows and the development of a more robust financial industry framework. These developments are expected to positively impact the Kingdom's long-term economic resilience and sustainability. This strategic alignment with global financial systems aims to foster a more competitive marketplace.