The Saudi stock market rose today after the country opened its stock market to all foreign investors, a move seen as a key step toward full market liberalization. The Tadawul All-Share Index rose as much as 2.5% on Wednesday, its biggest gain since September of last year. The authority stated that the removal of the so-called Qualified Foreign Investor (QFI) rules is the first step toward allowing overseas investors to hold majority stakes in Saudi companies. Current regulations limit foreign ownership to 49%. With oil revenue slumping and fiscal pressures mounting due to the high costs of Crown Prince Mohammed bin Salman’s reform agenda, Saudi Arabia’s need for foreign capital inflows has become increasingly apparent. These factors have led to budget deficits, threatened the pace of economic investment, and caused the Saudi stock market to post its worst annual performance since 2015 last year. Investors note that relaxing foreign ownership restrictions could serve as a catalyst for attracting billions of dollars in foreign investment.