Saudi Arabia’s equity market roared to life on Wednesday after word spread that the Capital Market Authority (CMA) is weighing a dramatic shift—allowing overseas investors to hold controlling stakes in listed firms.
The Tadawul All Share Index surged nearly 5% to touch 11,417, with more than 250 stocks charging higher. Banks led the stampede: Saudi National Bank and Al Rajhi Bank both locked in their daily 10% ceilings, while Banque Saudi Fransi wasn’t far behind with a leap of almost 10%.
At the heart of the frenzy is the CMA’s possible decision to scrap the 49% cap on foreign ownership, a barrier long seen as limiting Saudi Arabia’s appeal to global capital. Analysts say its removal could open the floodgates for billions in new money, boost valuations, and give Saudi equities more heft in global indexes like MSCI.
Market watchers estimate passive inflows alone could exceed $10 billion under a full ownership scenario, with financial heavyweights such as Al Rajhi, SNB, and Alinma standing to gain the most.
Reports suggest the reform could arrive before the year closes—setting the stage for a transformative moment in the kingdom’s market history.
