Tadawul trading screen pictured. 47% of fund managers believe the market is undervalued in Q3 2025
SNB Capital reported that the proportion of fund managers who believe the market is undervalued rose from 29% in Q1 2025 to a record 47% in Q3 2025.
Fund manager’s expectations for Saudi market’s performance in Q3 2025 were mostly neutral at 58%, while bearish expectations declined from 32% in Q1 2025 to 16% in Q3 2025, according to a survey conducted by SNB Capital.
Fund managers continued to view oil prices, interest rates, and inflation levels as the main market drivers. Regarding oil prices, the majority expect them to remain close to current levels at $65–69.9 in 2025 and 2026, while most fund managers anticipate two rate cuts in both 2025 and 2026.
Meanwhile, fund managers remained optimistic about technology and banking sectors, while optimism towards healthcare rose significantly (56% vs. 29% in Q1 2025). Conversely, sentiment remained largely negative toward petrochemicals.
The recent results reported by the banking and telecom sectors exceeded expectations, while results from petrochemicals and insurance came below forecasts. Looking ahead to 2026, they expect healthcare and banking to be the best-performing sectors, while petrochemicals will likely underperform.
Additionally, 53% of fund managers said they hold cash levels of less than 5% of assets under management, indicating that institutional liquidity is already deployed. Managers also affirmed their willingness to pay a premium for earnings quality and attractive growth opportunities, with growth strategies overall remaining their preferred investment approach.
As for the Nomu–Parallel Market, fund managers see it as lucrative, although liquidity is still a concern. That said, 47% of managers reported limited interest in Nomu, while 41% expressed strong or developing interest.
Looking ahead, 27% of fund managers plan to increase their investments in Nomu (vs. 39% previously), while 70% intend to maintain their current allocations with little change. Managers continue to view the software and technology sectors as the most attractive opportunities within Nomu.
Tadawul trading screen pictured. 47% of fund managers believe the market is undervalued in Q3 2025
SNB Capital reported that the proportion of fund managers who believe the market is undervalued rose from 29% in Q1 2025 to a record 47% in Q3 2025.
Fund manager’s expectations for Saudi market’s performance in Q3 2025 were mostly neutral at 58%, while bearish expectations declined from 32% in Q1 2025 to 16% in Q3 2025, according to a survey conducted by SNB Capital.
Fund managers continued to view oil prices, interest rates, and inflation levels as the main market drivers. Regarding oil prices, the majority expect them to remain close to current levels at $65–69.9 in 2025 and 2026, while most fund managers anticipate two rate cuts in both 2025 and 2026.
Meanwhile, fund managers remained optimistic about technology and banking sectors, while optimism towards healthcare rose significantly (56% vs. 29% in Q1 2025). Conversely, sentiment remained largely negative toward petrochemicals.
The recent results reported by the banking and telecom sectors exceeded expectations, while results from petrochemicals and insurance came below forecasts. Looking ahead to 2026, they expect healthcare and banking to be the best-performing sectors, while petrochemicals will likely underperform.
Additionally, 53% of fund managers said they hold cash levels of less than 5% of assets under management, indicating that institutional liquidity is already deployed. Managers also affirmed their willingness to pay a premium for earnings quality and attractive growth opportunities, with growth strategies overall remaining their preferred investment approach.
As for the Nomu–Parallel Market, fund managers see it as lucrative, although liquidity is still a concern. That said, 47% of managers reported limited interest in Nomu, while 41% expressed strong or developing interest.
Looking ahead, 27% of fund managers plan to increase their investments in Nomu (vs. 39% previously), while 70% intend to maintain their current allocations with little change. Managers continue to view the software and technology sectors as the most attractive opportunities within Nomu.
