#Saudi Regulator Reviews Foreign Stock Ownership Limits to Attract Investors - Bloomberg

Saudi Regulator Reviews Foreign Stock Ownership Limits to Attract Investors - Bloomberg

Saudi Arabia’s Capital Market Authority said a review of rules that limit foreign ownership in local stocks is underway as the kingdom looks to open further to overseas investors.

“FOL is under review,” said board member Abdulaziz Abdulmohsen Bin Hassan, referring to so-called foreign ownership limits that currently prevent overseas investors from holding majority stakes in local companies.

“We are committed to make it happen and we hope it’s going to be happening this year.”

The comments, made at the Capital Markets Forum Select in New York on Monday, indicate the regulator is proceeding with plans to lift the cap from 49% this year after months of uncertainty around the issue.

Bin Hassan didn’t offer further clarity on next steps but the CMA has said that its review would include analysis of whether to completely remove foreign ownership limits or take a more gradual approach.

A change in rules is perhaps the most highly-watched move for Saudi markets in 2026. A complete scrapping of the cap is something Wall Street firms from Goldman Sachs Group Inc. to JPMorgan Chase & Co. have said could unlock $10 billion in fresh inflows for the Gulf nation.

Saudi Arabia’s move to liberalize its equity market is one of a recent flurry of reforms — including allowing all foreigners to directly trade local stocks — aimed at drawing more foreign direct investment to the kingdom. It’s also part of Crown Prince Mohammed bin Salman’s effort to create more robust financial markets that can help advance his $2 trillion agenda to diversify the economy away from oil.

The Tadawul All Share Index rallied 8.5% in January, its best month since 2022, in part due to bullishness around the changes. The benchmark rose 1.4% on Monday.