In a landmark decision, the Capital Market Authority (CMA) of Saudi Arabia has revealed plans to open its financial markets to all foreign investors starting February 1, 2026. As emphasized in the official statement, this strategic move is set to reshape the investment landscape in the Kingdom, aligning with the broader goals of the Vision 2030 initiative.
CMA Announces End of QFI Requirements
The CMA's announcement marks the end of the Qualified Foreign Investor (QFI) requirements and swap agreements, which have previously restricted foreign participation in the Saudi market. By simplifying these regulations, the authority aims to diversify the investor base and enhance market liquidity, making Saudi Arabia a more attractive destination for international capital.
Recent Reforms and Ministerial Insights
This decision follows a series of reforms, including:
- the introduction of simplified account procedures in July 2025
- a public consultation held in October 2025
Minister of Investment Khalid Al-Falih highlighted these changes during the Saudi-Japanese Ministerial Investment Forum, underscoring the government's commitment to fostering a more open and competitive financial environment.
Impact on Foreign Investment
With foreign ownership in Saudi markets reaching SAR 590 billion by the third quarter of 2025, the anticipated changes could potentially unlock an additional SAR 10 billion in inflows from foreign investors. This influx is expected to significantly boost the appeal of Saudi equities and debt instruments, further integrating the Kingdom into the global financial system.
On the same day, South Korea approved amendments to its Capital Market Act, allowing security token offerings, which could significantly impact the financial landscape. For more details, see more.
