Saudi Arabia is making significant strides in opening its financial markets and redefining its investment landscape. The Saudi Capital Market Authority (CMA) is considering relaxing foreign investment restrictions to boost liquidity on Tadawul, which is the ninth largest stock exchange globally with a market cap of approximately US$2.43 trillion as of mid-2025. Currently, foreign investors face high eligibility thresholds and caps, such as a 49% ownership limit, and are mainly restricted to qualified foreign investors or those through swap agreements. In 2025, the CMA signaled intentions to further loosen these restrictions, potentially allowing all foreign investors to participate directly in the market while maintaining a 10% cap on individual holdings. This move aims to attract more international interest, especially in key sectors like energy, and to increase overall market activity. Separately, Saudi Arabia is advancing its financial sector through structured equity and private fund initiatives. MEFIC Capital has been recognized for its role in transforming the local investment environment, winning awards for corporate transformation, private equity, and equity fund management. The firm has engaged in strategic activities such as a partnership with Russell Investments for operational improvements, private equity exits like the sale of a stake in Sports Club Company, and the management of a high-performing Shariah-compliant equity fund with a five-year return of over 135%. These developments align with Saudi Vision 2030, aiming to diversify the economy, attract foreign capital, and foster a sophisticated, transparent financial sector. The relaxation of foreign investment rules and the growth of private equity and structured funds are expected to significantly enhance liquidity, market depth, and international participation in Saudi Arabia’s capital markets.