Reuters – Saudi Arabia plans to open its financial markets to all foreign investors from February 1, the Gulf country’s market regulator said on Tuesday, as it eases rules to attract more money from abroad.
The amendments approved by the Capital Markets Authority eliminate the concept of the Qualified Foreign Investor, scrapping a rule that allowed only international investors with direct and consistent access to the Saudi capital market.
The move will allow investors from around the world to invest directly in the capital market, the CMA said in a statement, adding it would support inflows and improve market liquidity.
Saudi Arabia, which is more than halfway through an economic plan to reduce its dependence on oil, has been trying to attract foreign investors, including by establishing exchange-traded funds with Asian partners in Japan and Hong Kong.
Regulators last year also opened the door for foreigners to buy listed firms that own real estate in Mecca and Medina, without changing restrictions on direct land ownership.
JP Morgan said it expected the impact of Tuesday’s move to be limited as “nearly all” institutional investors were already allowed to invest in the market.
