Saudi Arabia to Allow FDI From Feb 1; Already Home to 20 of the World’s Top 30 Banks
The move comes as Saudi Arabia prepares to reduce its dependence on oil. It has been trying to attract foreign investors.
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Saudi Arabia announced on January 6 that it would open its investment borders to all foreign investors in financial markets, effective February 1.
The Kingdom’s Capital Markets Authority confirmed the decision, eliminating the concept of the Qualified Foreign Investor, rendering the rule that allowed only international investors with direct and consistent access to the domestic capital market defunct.
Now, investors from around the world will be able to invest in the capital market directly, the CMA said in a statement, aiming to increase inflows and enhance market liquidity.
In 2025, regulators enabled foreigners to buy listed firms that own real estate in Mecca and Medina, without changing restrictions on direct land ownership.
The move comes as Saudi Arabia prepares to reduce its dependence on oil. It has been trying to attract foreign investors, including establishing exchange-traded funds with Asian partners in Japan and Hong Kong. The country has also been investing in research and development initiatives for artificial intelligence to move beyond its reliance on oil.
Meanwhile, Saudi Arabia has attracted 20 out of 30 of the world’s top global banks to expand the presence and activity of major global asset managers and international banks, as shared by Investment Minister Khalid Al-Falih during a Shoura Council session earlier this week.
He shared that with the National Investment Strategy being updated in 2025 to focus on “quality and productivity,” they’ve encouraged direct investments toward sectors with the highest economic impact, along with developing financing solutions for small and medium-sized enterprises.
Al-Falih highlighted that the Regional Headquarters Program has been a success, with over 700 global companies having been licensed by the end of 2025, exceeding the 2030 target of 500 companies.
The minister also shared that the number of active investment licenses is growing tenfold, from 6,000 in 2019 to 62,000 by the end of 2025.
He was responding to a question from Shoura Council member and Chair of the Trade and Investment Committee, Hanan Al-Sammari, on ensuring fair competition for local investors alongside attracting foreign investment.
