Saudi CMA May Lift Foreign Ownership Cap to 75%, Drawing $4.3 Billion

1 articles · Updated · enterpriseam.com · Aug 20

Morgan Stanley said a Saudi move to raise listed companies’ foreign ownership cap to 75% could bring about $4.3 billion of inflows, with $7.4 billion possible if restrictions are fully removed.
Mazen Al Sudairi’s appointment as chairman of the Capital Market Authority has revived expectations of a rule change from the current 49% aggregate limit, excluding strategic investors.
MSCI’s October price cutoff makes the next few weeks critical, because any change before then could lift Saudi stocks’ foreign inclusion factors and index weights in November’s review.
Al Rajhi Bank stands to gain the most, with estimated additional inflows of $2.1 billion to $4.6 billion, while a higher cap could also deepen liquidity for global investors.
The push comes as Saudi equities face softer trading conditions—TASI fell 1.95% in July and trading value dropped 20% year on year to SAR 86.1 billion.