Tadawul trading screen
The Capital Market Authority (CMA) plans to lift the foreign ownership cap in listed companies beyond the current 49% limit, with implementation expected before year-end pending government approvals, Argaam reported. 
Excluding Saudi Arabian Oil Co. (Saudi Aramco), foreign holdings stand at SAR 369.4 billion or 11.77% of the market.
The plan to lift the cap to 100% responds to global investor demand and aims to boost Saudi market weight in Morgan Stanley Capital International (MSCI) and Financial Times Stock Exchange (FTSE), where it now exceeds 4% and is set to climb once the rule takes effect.
Relaxing ownership rules is expected to increase the Saudi market’s relative weight, driving automatic inflows from index-tracking funds.
Tadawul trading screen
The Capital Market Authority (CMA) plans to lift the foreign ownership cap in listed companies beyond the current 49% limit, with implementation expected before year-end pending government approvals, Argaam reported.
Excluding Saudi Arabian Oil Co. (Saudi Aramco), foreign holdings stand at SAR 369.4 billion or 11.77% of the market.
The plan to lift the cap to 100% responds to global investor demand and aims to boost Saudi market weight in Morgan Stanley Capital International (MSCI) and Financial Times Stock Exchange (FTSE), where it now exceeds 4% and is set to climb once the rule takes effect.
Relaxing ownership rules is expected to increase the Saudi market’s relative weight, driving automatic inflows from index-tracking funds.
