Saudi Arabia will allow all foreign investors to directly access its financial market starting February 1, in a move aimed at boosting overseas inflows and improving liquidity, the country’s capital market regulator announced on Tuesday.

The Capital Markets Authority (CMA) said it has approved regulatory amendments that remove the long-standing “Qualified Foreign Investor” framework. Under the previous system, only select international investors that met specific criteria were allowed to invest directly in Saudi-listed securities.

By scrapping this requirement, the CMA said global investors will be able to participate more easily in the kingdom’s capital market. The regulator expects the change to support investment flows and deepen overall market activity.

The decision comes as Saudi Arabia continues its efforts to diversify the economy away from oil, in line with its long-term reform strategy. As part of that push, the kingdom has been working to attract foreign capital through initiatives such as launching exchange-traded funds in partnership with markets in Japan and Hong Kong.

Regulators also widened access last year by allowing foreigners to invest in listed companies that own property in the holy cities of Mecca and Medina, while maintaining restrictions on direct land ownership.

However, analysts expect the immediate impact of the latest change to be limited. JPMorgan noted that most large institutional investors already have access to the Saudi market. It added that the reform many investors are watching more closely is a potential increase in foreign ownership limits for listed companies.

The bank said any adjustment to the current 49% foreign ownership cap is unlikely before the second half of the year. Speculation about such a move previously lifted Saudi stocks in September, raising hopes of renewed international interest in the region’s largest equity market.

Saudi Arabia’s benchmark index declined 12.8% in 2025 and is down 1.9% year-to-date, according to LSEG data.