Why did Saudi investors increase trading in US stocks in 2025?

Saudi investors increased trading in US stocks because their domestic market was underperforming, experiencing significant declines.

How did the Saudi domestic stock market perform in 2025?

Saudi Arabia's Tadawul All Share Index saw a 13% annual decline in 2025, with total domestic trading volume also contracting.

What drove the growth in US stock markets during 2025?

US markets were primarily driven by the technology sector and investor enthusiasm for artificial intelligence, leading to over 16% gains.

Home / Business and Economy / Saudi Capital Flees Home Market for US Stocks

Saudi Capital Flees Home Market for US Stocks

27 Feb

•

Summary

Saudi financial institutions' US stock trading quadrupled in Q4 2025.
Saudi's Tadawul All Share Index saw a 13% annual decline in 2025.
US markets, driven by tech and AI, posted over 16% gains in 2025.

Saudi Capital Flees Home Market for US Stocks

Saudi Arabian investors significantly amplified their trading in US equities throughout 2025, shifting capital away from a struggling domestic market. By the fourth quarter of 2025, trading in US stocks by Saudi financial institutions reached approximately 254 billion riyals ($68 billion), more than doubling compared to the previous year.

This considerable shift occurred as activity on the Saudi exchange, the Tadawul, experienced a marked contraction. Total domestic trading volume decreased substantially from early 2024 to the end of 2025. The Tadawul All Share Index reflected this downturn, registering a 9% drop in the fourth quarter and a 13% annual decline for 2025, attributed to oil price volatility, fiscal pressures, and regional tensions.