Saudi market may attract over $10B if foreign ownership cap rises: Report

Tadawul trading screen

JPMorgan expects Saudi Arabia to attract about $10.6 billion in investment if the CMA raises the foreign ownership limit in listed companies from 49% to 100%, Bloomberg reported.

Pankaj Gupta, JPMorgan analyst, said Al Rajhi Bank will benefit most, potentially drawing $6 billion, followed by Saudi National Bank (SNB) and Alinma Bank.

EFG Hermes projected Saudi equities could attract roughly $10 billion in inflows if the foreign ownership cap is increased.

Bloomberg noted that the Capital Market Authority (CMA) is moving to allow foreigners to hold majority stakes in domestic companies.

CMA board member Abdulaziz bin Hassan said the authority was close to approving a major amendment to raise the foreign ownership limit, which currently stands at 49%, the report said.