Aljazira Capital: Most Saudi sectors seen attractive for foreign investors

Aljazira Capital said nine of Saudi Arabia’s sectors, including petrochemicals, banks, cement, and retail, are seen as lucrative foreign institutions looking to invest in the Saudi Stock Exchange (Tadawul).

The investment firm, however, remained neutral on five other sectors, including industrial investment, due to weaker government support and a controversial Saudization initiative.

Meanwhile, the outlook for energy and utilities was said to be “neutral” given the sector’s strong reliance on fossil fuels. Multi-investment has also seen constrained government support.

A planned tax on undeveloped urban land, as well as the housing market’s current recession, is expected to weigh on real estate as developers see an impact in the near-term, the brokerage firm added.

The transport sector is expected to suffer from its over-reliance on industrial activity, which has recently declined.

As for the telecom sector, Aljazira gave a negative outlook amid market saturation and ongoing financial and legal issues at Etihad Etisalat Co. (Mobily). The telecom industry in Saudi Arabia is currently 170 percent penetrated.