Benchmark Index Surges 5.1%—Biggest Jump in Over 5 Years
Saudi Arabia’s Tadawul All Share Index (TASI) soared 5.1% to close at 11,426, marking its most significant single-day gain in more than half a decade. The rally was sparked by speculation that the Capital Market Authority (CMA) may lift the current 49% cap on foreign ownership of listed companies. This potential reform has ignited investor optimism, with the Saudi Stock Reform Impact reverberating across sectors.
Al Rajhi and Saudi National Bank Hit 10% Limit—Decade-High Gains
Leading the charge were financial heavyweights Al Rajhi Bank and Saudi National Bank, both surging 10% and hitting the exchange’s daily trading ceiling. For Al Rajhi, the world’s largest Islamic lender, this marks its steepest rise in nearly 20 years. Saudi National Bank’s leap is its most significant since its 2014 IPO. These gains underscore the market’s bullish response to anticipated regulatory shifts.
$10 Billion in Potential Foreign Inflows—MSCI Weight Rebalancing Ahead?
Analysts estimate that easing foreign ownership restrictions could unlock over $10 billion in new capital inflows. Such a move may prompt MSCI to increase Saudi Arabia’s weight in its emerging market indices, further amplifying the Saudi Stock Reform Impact. This would not only boost liquidity but also elevate valuations across the board, making Saudi equities more attractive to global investors.
Aramco Slips 0.2% Amid $1.2B Repsol Deal Stalemate
While most sectors basked in the rally, oil giant Saudi Aramco edged down 0.2%. The dip followed stalled negotiations over a €1 billion ($1.2 billion) investment in Repsol’s renewables unit. Despite the setback, Aramco’s minor decline did little to dampen the overall market sentiment, which remains buoyed by reform-driven momentum.
UAE and Gulf Markets React—Dubai Falls 1.5%, Abu Dhabi 1.3%
In contrast, UAE markets retreated, with Dubai’s DFMGI falling 1.5% to 5,872 and Abu Dhabi’s FTFADGI dropping 1.3% to 9,978. Profit-taking and regional uncertainty contributed to the declines. Emaar Properties slid 2.5% to a three-month low, while Emirates NBD lost 1.5%. The regulatory buzz in Saudi Arabia appears to have triggered caution elsewhere, highlighting the ripple effect of the Saudi Stock Reform Impact.
Regional Snapshot—Mixed Performance Across MENA
- Qatar’s QSI fell 0.9% to 11,079, marking its fourth consecutive decline.
- Egypt’s EGX30 bucked the trend, rising 1.8% to 35,949, led by a 3.2% gain in Commercial International Bank.
- Oman’s MSX30 edged up 0.5% to 5,114.
- Bahrain’s BAX remained flat at 1,948.
- Kuwait’s BKP declined 0.9% to 9,424.
The mixed performance across the region underscores how the Saudi Stock Reform Impact is reshaping investor sentiment, with Saudi Arabia emerging as the focal point of reform-driven optimism.
Investor Sentiment: Reform as a Catalyst for Long-Term Growth
Market participants view the potential regulatory shift as a watershed moment for Saudi equities. By opening the door to majority foreign ownership, the CMA could catalyze a new era of transparency, governance, and global integration. The Saudi Stock Reform Impact is not just about numbers—it’s about reshaping the narrative of the region’s largest economy.
Also Read: Saudi Commands 76% of GCC IPOs, $1.4B Foreign Inflows in Q2 2025
