Saudi Arabia’s stock exchange extended its positive momentum last week, with the total market capitalization of listed companies on the Main Market rising 0.32 percent to reach SAR 9.71 trillion for the week ended March 26 — an increase of approximately SAR 30.5 billion compared to the week before. Foreign investor ownership held at 4.69 percent of total market capitalization, according to the weekly ownership data published by the Saudi Exchange, as international institutions continued adding exposure to Saudi equities.
Foreign Institutional Interest Holds Steady
Foreign institutions drove the bulk of international participation, accounting for 52.1 percent of total buys on Tadawul during the period, compared to 46.6 percent of total sells — a net buying posture that contributed to a SAR 5.56 billion increase in total foreign ownership between March 16 and March 26. Of this, the institutional component grew by SAR 5.36 billion to reach SAR 379 billion in total, reflecting sustained confidence from international asset managers in the outlook for Saudi-listed equities.
The week in question comprised only three trading sessions, as the market was closed for the Eid Al-Fitr holiday, meaning the buying activity was concentrated within a compressed timeframe. Saudi government entities were among the most active buyers during the period, registering SAR 845.8 million in net purchases, while Saudi mutual funds added SAR 256 million and Saudi corporates contributed SAR 196.6 million in net buys.
A Market Reshaped by Regulatory Reform
The steady flow of foreign capital into Tadawul reflects more than just market performance — it speaks to a structural shift in access rules that took effect in February 2026, when the Saudi Exchange eliminated the Qualified Foreign Investor restrictions that had previously limited international market participation. That regulatory change opened Saudi equities to any international investor without the need for prior qualification, a move that analysts expect to deepen foreign ownership levels and integrate Tadawul more fully into global portfolio strategies.
The TASI benchmark closed at 11,080 points on March 25, extending what has been three consecutive weeks of gains and reinforcing the market’s recovery from the volatility seen earlier in the year. With foreign ownership of the free float standing at 12.58 percent, the Saudi market continues to attract meaningful institutional allocation from global fund managers seeking exposure to one of the region’s most liquid and diversified equity landscapes.
