Derayah Financial CEO: Nearly 500 foreigners applied for access to Saudi market, entry will be gradual

The opening of the Saudi market following years of regulatory and legislative reforms aimed at attracting global investors and enhancing the market’s infrastructure, he told Asharq Bloomberg TV on the sidelines of the Capital Markets Forum in New York.

He explained that foreign participation will be gradual, noting that it will be investment-driven, with no significant cash inflows expected on the first day or in the first month, as the process is based on confidence, regulation, and transparency.

Performance of listed companies and the market overall will ultimately drive investor interest, the CEO said.

He pointed out that the Saudi market continues to expand steadily, with new sectors being introduced and companies from different industries listed almost annually.

AlShammasi noted that increasing foreign ownership limits in listed companies is subject to regulatory authorities, but expects that some vital sectors, such as banking, telecommunications, and infrastructure and data institutions, will remain capped and not be fully liberalized.

The end of 2024 witnessed very high valuations, which led to weaker market performance in 2025, as corporate earnings did not keep pace with those elevated valuations over the past 12 to 18 months, he added.

Expectations for 2026 indicate a “year of recovery”, supported by strong results from the banking sector, which kicked off the earnings season with a solid performance, AlShammasi said.

He added that many sectors are currently trading at levels near or below their multi-year lows, including healthcare, telecommunications, and banking, all of which offer strong investment potential at current valuations.

According to data available with Argaam, Saudi Arabia’s stock market opened to all categories of foreign investors on Feb. 1, allowing direct investment in the Main Market (TASI).

This step follows the Capital Market Authority’s board approving the regulatory framework, which allows non-resident foreign investors to invest directly in TASI, making it accessible to a wider range of global investors.