Saudi Arabia opens its capital markets to foreign investors.

VTV.vn - Saudi Arabia, the largest economy in the Middle East, recently announced it will open its capital markets to all groups of foreign investors starting in February.

This decision by Saudi Arabia has attracted considerable attention from Gulf and international investors. The Saudi Arabian Capital Markets Authority stated that the approved amendments have eliminated the previously existing concept of "eligible foreign investors" in the main market, thereby allowing all groups of foreign investors access to the market without meeting eligibility requirements. This move aims to expand and diversify the investor base permitted to invest in the main market, thereby supporting investment flows and improving market liquidity.

According to The National, statistics show that the value of international investors' holdings in the Saudi Arabian capital market exceeded $157 billion by the end of the third quarter of last year, while international investment in the main market reached approximately $138 billion during the same period. Saudi Arabia is seeking to revive its $2.23 trillion stock market.

In the middle of last year, the Middle East Economic Daily reported that the Saudi Arabian Capital Markets Authority had also approved measures to simplify the procedures for opening and operating investment accounts for certain groups of investors.

These entities include foreign individual investors residing in one of the Gulf countries, as well as those who have previously resided in Saudi Arabia or any Gulf country. This step is seen as an intermediate phase, paving the way for the recently announced decision, with the goal of boosting confidence among key market participants and supporting the domestic economy.

Saudi Arabia, a country now more than halfway through its economic plan to reduce its dependence on oil, is actively seeking to attract foreign investors, including establishing exchange-traded funds (ETFs) in partnership with Asian partners in Japan and Hong Kong (China).

The latest measures come as Saudi Arabia continues to open its economy to foreign investors as part of its Vision 2030 program. Launched exactly 10 years ago, this program has numerous goals, including diversifying the economy, reducing dependence on oil, and supporting private sector growth.

Source: https://vtv.vn/saudi-arabia-mo-cua-thi-truong-von-cho-nha-dau-tu-nuoc-ngoai-100260115053643371.htm