Foreign investments surge in Saudi stocks, reaching $1.02bn in September

RIYADH: Foreign investors made net purchases of approximately SR3.84 billion ($1.02 billion) in stocks on the Saudi Exchange in September, marking a 947 percent increase year on year, according to official data.

The latest monthly report from Tadawul revealed that net foreign purchases in September 2023 amounted to SR366 million.

Attracting foreign investment is a key objective under Vision 2030, as Saudi Arabia seeks to position itself as a global business hub. A recent report from Statista highlighted the growth of the Saudi market, noting that the Kingdom’s stock exchange, with a market capitalization of $2.93 trillion, ranks as the third largest in the Europe, Middle East, and Africa region.

According to Tadawul, net foreign purchases for the first nine months of this year totaled SR16.4 billion, reflecting a 36 percent increase from the previous year. Qualified foreign investors led these international purchases, contributing SR3.78 billion in September, while foreign residents added SR76.62 million to their holdings.

The total value of foreign ownership in Saudi stocks reached SR414.9 billion in September, a year-on-year increase of 13.39 percent. In comparison, Saudi individuals held stocks valued at SR946.32 billion in the main market, up 18.71 percent from the same period last year. Institutional investors reported stock holdings of SR8.66 trillion by the end of September, representing a 15.01 percent decline year on year.

Gulf Cooperation Council investors owned stocks worth SR77.72 billion in the Kingdom’s main market by the end of September, marking a 36.85 percent increase compared to the previous year.

Parallel market insights

The report also highlighted that foreign ownership in Saudi Arabia’s parallel market, Nomu, reached SR914.07 million by the end of September, up 67.54 percent year on year.

In this market, both individual and institutional Saudi investors held stocks valued at SR54.33 billion in September, reflecting a 16.73 percent rise from the previous year.

Stocks held by GCC investors in the parallel market surged by 26.85 percent year on year, totaling SR247.44 million by the end of September.