Foreign institutional purchases of Saudi stocks jump to 3.7 billion riyals
The Saudi stock market (Tadawul) witnessed significant shifts in its ownership structure during February 2026, with foreign institutions notably increasing their investment presence and recording net purchases of SAR 3.7 billion on the main market. This strong buying trend reflects the continued attractiveness of the Saudi financial market to international investors and their confidence in the strength of the national economy.
Details of trading by foreigners and institutions
According to the Saudi Stock Exchange's monthly report on trading and ownership by nationality, foreign institutions accounted for a significant share of market activity, with purchases representing 44.9% of total buy transactions in the main market, compared to 40.7% of total sell transactions. This positive balance underscores the strategic positioning employed by foreign funds and portfolios to increase their exposure to promising investment opportunities in the Kingdom.
Saudi investors' movement: Profit-taking and repositioning
In contrast, local investors were net sellers, perhaps as part of profit-taking or portfolio restructuring. Saudi individuals recorded net sales of SAR 3.2 billion. The breakdown of these sales is as follows:
- Specialized individual investors: recorded the highest net sales of approximately 1.7 billion riyals.
- Large individual investors: Their net sales amounted to approximately 831 million riyals.
- Individual (ordinary) investors: recorded net sales of approximately 409 million riyals.
- Managed portfolios: Recorded net sales of 321 million riyals.
Saudi institutions also joined the selling side, recording net sales of 711 million riyals during the same period.
Economic context and the importance of foreign investment
These figures take on particular significance when viewed within the context of Saudi Arabia’s Vision 2030, which aims to diversify revenue streams and position the Saudi financial market as one of the world’s leading markets. The influx of foreign institutional capital not only boosts trading volumes but also contributes to market depth and enhances transparency and governance, as foreign institutions often focus on companies with strong financial standing and high disclosure standards.
Expected impact and market future
The continued injection of liquidity by foreign institutions is a positive indicator in the medium and long term, as it strengthens the Saudi market's weight in global emerging market indices such as MSCI and FTSE Russell. This trend also supports market stability and reduces the volatility that can result from the dominance of individual investors, suggesting greater investment maturity in Tadawul in the coming periods.
