Saudi Market Surges on Foreign Ownership Cap Review, Crypto Unmentioned

Saudi stocks rallied over 5% Wednesday amid speculation the Capital Market Authority may lift foreign ownership limits before 2025 ends. The Tadawul All Share Index added $123 billion in value—its largest single-day gain since 2020—with banking stocks leading at 9% advances.

Despite the surge, the index remains 9.6% down year-to-date, trailing regional peers like Dubai (+13.8%) and Kuwait (+20%). Analysts attribute the underperformance to oil price weakness and constrained foreign participation under the current 49% ownership cap.

UBS estimates full foreign access could unlock $9.5-$10 billion in passive inflows, particularly from index funds. "The floodgates WOULD open immediately," said Victor Martin, UBS's EMEA trading head. Even energy giant Aramco, down 10% this year, failed to buck the broader large-cap slump.