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Saudi Stocks Attract Billions: Foreign Investment Surges
21 Jul
Summary
- Overseas investors injected $1.6 billion into Saudi stocks last quarter.
- Saudi Arabia's market reform opened doors for all foreign investors.
- The kingdom's economy is expected to grow despite regional tensions.
In the second quarter of 2026, overseas investors channeled $1.6 billion into Saudi Arabia's stock exchange. This significant inflow marked Saudi Arabia as the sole Gulf market to experience a net increase in foreign buying during this period. The positive trading activity report was released by Kamco Invest.
The kingdom's strategic decision to fully open its stock market to all international investors on February 1, 2026, significantly contributed to this trend. Foreign net buying saw a substantial 75% year-on-year rise in the first half of 2026. Further enhancements to the Tadawul's appeal could arise if the Saudi regulator proceeds with lifting current foreign ownership caps, which stand at 49%.
This robust performance also reflects Saudi Arabia's relative stability amid regional geopolitical challenges, particularly the US-Iran conflict, which has impacted other Gulf nations more severely. Economic forecasts remain positive, with the Saudi economy still projected to achieve growth this year.
