Saudi Arabia’s stocks have jumped by over 5% to record their biggest rise in 5 years after reports on removing the 49% cap on foreign ownership of listed firms.
The Tadawul All Share Index saw $3.86 billion in trades, which is nearly a 200% increase on the 90 day average.
The change is expected before 2025 and could attract more than $10 billion in foreign investment to the Kingdom’s markets.
Record Saudi Arabia’s Stocks Rise
Saudi Arabia’s stock market has recently experienced a remarkable surge, marking its most significant gain in over five years. This surge is primarily attributed to reports suggesting that the Kingdom is contemplating the removal of existing restrictions on foreign ownership of publicly listed companies.
The Tadawul All-Share Index, which serves as the benchmark for Saudi Arabia’s stock market, witnessed an impressive increase of over 5% in a single day. This surge propelled the index to a level not seen in years, reaching approximately 11,426.5 points.
The trading volume was equally noteworthy, with transactions totaling around $3.86 billion, representing a staggering 200% increase compared to the average trading volume over the past 90 days.
Key Players in the Market
Among the stocks that experienced significant gains, Al Rajhi Bank stood out, with its shares climbing by the maximum daily limit of 10%. Other notable performers included the Saudi National Bank and several real estate firms, which also saw their stock prices rise sharply.
The banking sector, in particular, recorded an impressive overall gain of around 9.2%, highlighting the sector’s resilience and attractiveness to investors.
Understanding the Proposed Changes
Current Ownership Restrictions
At present, foreign investors are limited to owning a maximum of 49% of shares in publicly listed companies. This cap has been a significant barrier to attracting foreign capital, which is crucial for the Kingdom’s economic diversification efforts.
The proposed reforms aim to eliminate this restriction, allowing foreign investors to acquire majority stakes in Saudi firms.
Potential Timeline
According to reports, the Capital Market Authority (CMA) is actively considering these changes, with the possibility of implementation before the end of 2025. This timeline indicates a sense of urgency within the Saudi government to enhance the attractiveness of its equity market and align it with global standards.
Attracting Billions in New Capital
Analysts predict that the proposed changes could lead to an influx of foreign capital exceeding $10 billion. This anticipated investment surge would not only benefit individual companies but also contribute to the overall growth of the Saudi economy.
Enhanced Market Liquidity
With the removal of ownership restrictions, the Saudi stock market is expected to become more liquid and attractive to passive investors. This increased liquidity could lead to improved stock valuations and greater participation from institutional investors.
Supporting Vision 2030
The proposed easing of foreign ownership limits aligns with Saudi Arabia’s Vision 2030 initiative, which seeks to diversify the economy away from its heavy reliance on oil revenues. By attracting foreign investment, the Kingdom aims to bolster its financial markets and stimulate private sector growth.
Saudi Stocks Boom Awaits
The recent surge in Saudi Arabia’s stocks signals a pivotal moment for the Kingdom’s financial markets. As the government considers easing foreign ownership restrictions, the potential for increased investment and economic diversification becomes more tangible.
With a commitment to transparency and sustainable growth, Saudi Arabia is poised to transform its equity market into a global investment hub, attracting capital and fostering innovation for years to come.
Transformative Projects in Riyadh
Rise Tower Riyadh
Rise Tower Riyadh is due to become the world’s tallest building at 2 kilometers in height surpassing both the Burj Khalifa in Dubai and the upcoming Jeddah Tower.
Designed by global firm HKS, this tower is part of the North Pole Project Riyadh and will feature 678 floors with hotels, restaurants, offices, and observation decks.
Its construction is planned to start in 2026 near King Khalid International Airport and is expected to finish major work by 2030.
Riyadh Creative District
The Royal Commission for Riyadh City has launched Riyadh Creative District to position Riyadh as a global hub for media, culture, and innovation.
Partnering with Riyadh’s iconic KAFD, it is designed to support creatives, startups, and industry leaders and enhance Saudi Arabia’s leadership in the creative economy.
It also aims to promote talent and economic growth to drive digital transformation, aligning with Vision 2030.
Riyadh Metro
The long awaited world’s longest driverless metro system, Riyadh Metro is officially launched with all six lines of the network operating fully.
The $22.5 billion Riyadh metro project spans 176 km across 85 stations and aims to make Riyadh one of the most connected cities in the world.
Operating from 6 AM to midnight, the world’s longest driverless Riyadh Metro covers 176 km with 85 stations.
Dar Global and Mouawad’s Villa Project
Dar Global, an international real estate developer, has partnered with luxury jeweler Mouawad to unveil a $235 Million Villa Project in North Riyadh, close to the World Expo 2030 site.
The development will include 200 exquisite villas, similar to the prestigious Bulgari Residences, and aims to boost Riyadh’s reputation as a top luxury destination.
Scheduled for completion in 2026, this project represents Dar Global’s debut in Saudi Arabia and Mouawad’s entry into the real estate market.
Global Sports Tower
Saudi Arabia has unveiled plans for The Global Sports Tower in Riyadh, which is set to become the world’s tallest sports tower.
This 130-meter towering structure will be located in The Sports Boulevard, one of the major projects in Riyadh.
It is expected to include various world-class sports facilities, such as the highest indoor climbing wall in the world and a running track on its rooftop.
The Avenues Riyadh
The highly anticipated Avenues Riyadh project, valued at $4.58 billion, has reached 44.5% completion and is scheduled to open in early 2026.
Situated in northern Riyadh, this iconic development, inspired by Salmani architecture, will cover 390,000 square meters and host one of the Middle East’s largest malls.
It will also feature three luxury hotel towers: Waldorf Astoria, Canopy by Hilton, and Conrad. This project supports Saudi Vision 2030’s goal of making Saudi Arabia a leading global tourist destination.
Boulevard Business Park
Saudi Arabia’s General Entertainment Authority has unveiled plans for a $266 million business park at Boulevard City in Riyadh.
Named the “Boulevard Business Park,” this new project will consist of nine buildings with views of the Boulevard City Fountain, an outdoor art gallery, and a suspended pool.
The initiative aims to promote creativity, innovation, and support for entrepreneurs and businesses, in line with Saudi Vision 2030.
New Murabba
The most recent video demonstrates significant advancements in the construction of the New Murabba, the largest contemporary downtown in northwest Riyadh.
A remarkable 5 million cubic tonnes of soil have already been removed, and the project is making notable headway.
This ambitious venture covers an area of 19 square kilometers and will include the distinctive cube-shaped Mukaab at its heart, capable of holding 20 Empire State Buildings.
King Salman Park
King Salman Park, the largest urban park in the world, is scheduled to open in 2024, covering a total area of 16 square kilometers.
The park includes 11 square kilometers of greenery and water features in the heart of Riyadh.
Its major attractions will be a Royal Arts Complex, an equestrian center, an 850,000-square-meter Royal golf course, and the city’s first skydiving center.
In addition, the park will offer over 2,000 hotel rooms and aims to elevate the quality of life in the city, following the goals of Saudi Vision 2030, thereby improving Riyadh’s global ranking.
Riyadh Sports Boulevard
The Riyadh Sports Boulevard has been designed to be the longest linear park in the world, with the purpose of connecting the Wadi Hanifa in the western part of Riyadh to the Wadi Al Sulai in the eastern part of the city, spanning a total distance of 135km.
This project aims to transform Riyadh into one of the world’s most livable and healthy cities. The development plans to include various pathways, bike lanes, and horse riding trails, covering a vast area of 4.4 million square meters of green spaces.
The impressive initiative will also consist of 8 exceptional districts, such as an athletics district, an entertainment district, and an arts district.
With these transformative projects, Riyadh, one of the world’s top 15 fastest-growing cities, is transforming into a city known for its accessibility and quality of life to become among the world’s top 10 cities with an investment of $1 trillion over the next seven years.
Keep Reading: Rise Tower Riyadh to Become the World’s Tallest Building Surpassing Burj Khalifa and Jeddah Tower
