Saudi Arabia will open the country's US$531-billion stock market to international investors, removing barriers on one of the world's most restricted major stock exchanges.

Capital Market Authority, Saudi Arabia's financial regulator, was given the authorization on Tuesday by the cabinet members to open their stock market to international financial institutions and foreign investors.

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The market is currently limited to domestic investors and foreigners from the six-nation Gulf Cooperation Council.

Saudis stock market, Tawadul, has 152 companies listed on it and is valued at an estimated USD531 billion.

Among the companies listed on Tawadul are Saudi Basic Industries Corp. which is the No.1 producer of petrochemicals and the largest Islamic lender- Al Rajhi Bank, among others.

The schedule for the international opening of the Saudi bourse has not been disclosed yet but the terms for potential foreign investors have already been laid out as early as last year.

The draft rules require that the company must be operating for at least five years and with a minimum of US$5 billion in total assets.

Tawadul cash and market director Waleed al-Bawardi said that opening Saudi's stock market to foreign investors would provide more stability to the country's local exchange.

Bawardi said the planning stage started in 2013, but there were still a lot of work that has to be done and they still need the approval of higher authorities.

National Bank of Abu Dhabi's chief investment officer Gary Dugan said Saudi Arabia is the great "sleeping giant" in the Middle East.

He said that with the Saudi opening its doors to foreign investors, their region has gained more credibility, according to Bloomberg.

Dugan added that because of allowing foreign investors into the stock market, there is a big possibility that Saudi will be included in the Morgan Stanley Capital International (MSCI) index as being the biggest stock market outside China.

Tagsinvestors, stock market, Foreign