Saudi trading in foreign markets surges in 2025: Drivers & outlook

Saudi capital market institutions (brokerage firms) recorded remarkable growth in total traded values in foreign markets during the period from Q4 2024 until Q4 2025.

The traded values (buy and sell) soared 145%, from SAR 105.7 billion at the end of Q4 2024 to about SAR 259.2 billion by the end of Q4 2025.

In parallel, the value of clients’ assets in securities listed on foreign markets expanded by 60%, from SAR 22.4 billion at the end of Q4 2024 to SAR 35.8 billion at the end of Q4 2025.

The total traded values shown in the report are twice those reported by the Saudi Exchange (Tadawul) due to calculation methodology, as brokerage firms charge commissions to both the buyer and the seller on each transaction.

Analysts surveyed by Argaam  believe this growth reflects a rising shift by Saudi investors toward global markets, particularly the US, driven by improved performance, higher liquidity, portfolio diversification, and access to growth opportunities not available locally.

US Market Dominates Foreign Trading

By the end of Q4 2025, the US market accounted for about 98% of Saudis’ foreign trading, with total Saudi trading reaching SAR 837 billion in 2025, indicating a clear concentration compared to other markets.

Drivers Behind the Shift to Foreign Markets​

Mohammed Adel Farraj, Senior Director, Head of Asset Management at Arbah Capital

Mohammed Adel Farraj, Senior Director, Head of Asset Management at Arbah Capital, said Saudi investment landscape witnessed a strategic shift in 2025 towards mature asset allocation, with liquidity moving significantly to global markets—especially the US—to reduce dependence on the local economic cycle and diversify risks.

Saudi trading in US equities was driven by the desire for exposure to advanced technology and artificial intelligence (AI) sectors through major companies such as NVIDIA and Apple. Farraj explained that this trend was facilitated by electronic trading platforms that reduced costs and improved real-time access to information. Whereas, the local market remained attractive to quality investments, with net foreign purchases reaching about SAR 20.7 billion during 2025.

Saad Althaqfan, a board member of the Saudi Economic Association (SEA)

Saad Althaqfan, a board member of the Saudi Economic Association (SEA), stated that investors’ shift toward foreign markets, particularly the US market, is driven by several factors, including easy access through local brokers, lower trading commissions, and the absence of price limits on stock movements.

The US markets host high-growth-rate companies and sectors, which are unavailable in the Saudi market, along with higher trading volumes compared to the local market.

The continuous improvement in global market performance, with repeated record levels, boosted investors’ appetite for foreign trading, pointing out that technological advancements greatly facilitated trading anytime and anywhere, Althaqfan added.

Strong performance attracts liquidity

Market analyst Abdullah Al-Jubaili

Market analyst Abdullah Al-Jubaili highlighted that recent data and statistics indicate a notable increase in Saudi investors’ interest in global markets, particularly the US, which captures the largest share of outbound liquidity from both individual and institutional investors.

This trend stems from low liquidity levels in Tadawul and a slowdown in trading activity, especially following multiple recent IPOs, which affected the market’s daily liquidity.

US stock indices showed strong performance in 2025, with the Nasdaq and Dow Jones rising by nearly 20%, attracting Saudi investors seeking higher-growth opportunities abroad.

He added that if US markets begin a correction or Tadawul reaches price levels deemed attractive by investors, liquidity is expected to gradually return to Tadawul, particularly as economic and geopolitical conditions in the region improve.

Al-Thaqfan noted that the majority of investors in foreign markets are individuals, whose trading tends to be speculative with high-frequency activity, leading to an increase in transaction volumes.

Individual investors often hold stocks for short periods to capture quick price gains, which raises risk levels and can result in losses during market fluctuations.

Meanwhile, Farraj pointed out that this activity reflects an active investment approach and the use of advanced tools such as index funds. However, it also increased portfolio turnover, indicating a speculative tendency that may heighten volatility and costs.

This trend does not represent a withdrawal from Tadawul, which remains a pillar of stability and dividend distribution, but rather a redefinition of integration between local and global assets.

He emphasized that sustaining this level of financial maturity depends on disciplined risk management, limiting leverage, and consciously distinguishing between long-term investments and short-term speculation to seize global opportunities without compromising financial positions.

Al-Jubaili highlighted that Saudi investor awareness contributed to greater diversification, with more investment in mutual funds, debt instruments such as sukuk, and foreign markets — reflecting an evolution from the past, when options were mostly limited to stocks and real estate.

In addition, the ease of trading and high liquidity in US markets further fuels Saudi investors’ appetite for short-term speculation, which dominates their investment behavior.

Al-Thaqfan noted that this shift in some investors’ behavior impacted trading in Tadawul; however, it has been offset by increased foreign investment and higher foreign ownership of local stocks, helping to compensate for the decline in individual investor liquidity.

Local market share falls to 75% in 2025

Trading data for 2022–2025 showed a noticeable shift in liquidity distribution. Although the local market still held the largest share, foreign trading rose to 25% of total trading in 2025.

*Includes GCC, Arab, Asian, US, European, and other markets.

The report indicated that total traded values are twice those reported by Saudi Exchange (Tadawul), as brokerage firms charge commissions to both the buyer and the seller on each transaction.

Risk management in foreign markets

Al-Jubaili emphasized the importance of staying aware of risks in the US markets, particularly those related to inflation, interest rates, and political developments.

He noted that certain decisions, such as the US Supreme Court ruling on tariffs, could have a rapid impact on the markets.

He urged investors to diversify and regularly monitor their portfolios to ensure sustainable profit growth.

Al-Thaqfan added that investors should approach global markets with caution given high volatility and the lack of price limits, emphasizing the need to diversify across sectors and regularly review investments to mitigate potential risks.