Saudi Exchange Sees Net Foreign Inflows Fall By 13.4% YoY In 9M 2025:
The Saudi Exchange (Tawadul)—the largest in the Middle East, with a market capitalization of $2.5 trillion as of the end of September 2025—has experienced a slowdown in net foreign inflows this year, including from investors in GCC countries and beyond. The decline comes amid shifting global markets, tighter monetary policies, and fluctuating oil prices.
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Saudi Exchange
Saudi Exchange
Net foreign purchases in the main market fell to $4.5 billion (SAR 16.7 billion) in the first nine months of 2025, compared to $5.1 billion (SAR 19.3 billion) during the same period last year, reflecting increased caution among international investors. This slowdown occurred despite ongoing market reforms and strong IPO momentum, indicating a shift in the dynamics of foreign participation in Saudi equities.
In parallel with declining foreign inflows, Tadawul All-Share Index (TASI) dropped 4.4% year-to-date to close at 11,503 points at the end of September, making it the weakest performer among the seven main GCC indices. However, TASI gained 7.5% in September alone.
In early October 2025, the Capital Market Authority (CMA) invited market participants and stakeholders to share feedback on a proposal to open the primary market to all categories of non-resident foreign investors, allowing them to invest directly for the first time. In September 2025, the media reported that CMA was close to easing rules that cap foreign ownership of listed companies at 49%.
Here’s a closer look at the reasons for the 13.4% year-on-year slowdown in foreign inflows to the Saudi Exchange’s primary market during the first nine months of 2025, along with the outlook for the remainder of the year.
