Saudi Arabia Opens Stocks to All Foreign Investors

Summary

Saudi Arabia is opening its stock market to all foreign investors, removing prior criteria such as the $500 million AUM threshold for investment managers. Christine Burke says this is a step toward full liberalization and possibly lifting the 49% foreign ownership cap, which should support Saudi equities after a weak year. She also notes Saudi Arabia has front-loaded large dollar bond and loan financing in early 2026, raising about $25 billion, over 40% of expected annual needs, while its budget deficit remains driven by heavy spending and low oil prices.

• Saudi Arabia removes key barriers for foreign investors in its stock market.
• Move may pave the way for foreign ownership above 49% in Saudi companies.
• Reforms could improve sentiment for Saudi equities after weak performance.
• Saudi Arabia raised $11.5 billion in dollar bonds and a $13 billion syndicated loan early in 2026.
• The roughly $25 billion raised is over 40% of expected $58 billion annual financing needs.
• Budget deficit is expected to narrow to 3.3% of GDP but remains wide.
• Fiscal gap stems from diversification spending and subdued oil prices.
• Funding mix may shift toward private markets and slower international issuance.