Net purchases by foreign institutions in trading exceeded 395 million riyals
The weekly report issued by the Saudi Stock Exchange “Tadawul” on ownership values and traded value revealed a strong buying trend by foreign institutions in the main market during the week ending on February 19, 2026, as their net purchases amounted to approximately 395 million Saudi riyals, reflecting increasing confidence in the strength of the Saudi economy and the investment opportunities available in the financial market.
Details of foreign institutional trading
The report's detailed data revealed that foreign institutions accounted for a significant share of total market activity, with their purchases representing 37.03% of total purchases in the main market, while their sales accounted for 35.07% of total sales. This positive balance underscores the continued momentum of institutional investment and the flow of foreign capital into leading stocks and promising sectors in the Kingdom.
Movement of individual investors (foreign and local)
Foreign individual investors recorded a slight net purchase of approximately SAR 3.72 million. According to the figures, their direct purchases amounted to approximately SAR 406.6 million (equivalent to 2% of total market trading), compared to sales of SAR 420.9 million.
In contrast, Saudi individual investors tended to sell to generate liquidity or realize profits, with their net sales totaling approximately 635 million riyals. Saudi institutional investors bucked this trend, recording net purchases of around 186 million riyals, indicating a divergence in strategies between individuals and institutions, with institutions (both local and foreign) tending towards long-term investment positions.
Regulatory context and the impact of market liberalization
This notable activity coincides with significant regulatory steps taken by the Saudi financial market. Effective February 1, 2026, the market was opened to all categories of foreign investors, enabling them to invest directly—a pivotal step aimed at deepening the market and increasing liquidity.
These moves are part of the Financial Sector Development Program, a pillar of Saudi Vision 2030, which aims to transform the Saudi financial market into an advanced and attractive market for both local and international investment, thereby strengthening the Kingdom's position as a regional and global financial hub. Expanding the base of foreign investors not only injects new liquidity but also facilitates the transfer of financial expertise and raises standards of governance and transparency in listed companies.
Expected economic impact
The continued positive net buying by foreign institutions is a vital indicator of the attractiveness of current valuations for Saudi stocks compared to other emerging markets. This trend also reflects a positive reading of the Kingdom's macroeconomic indicators, stable energy prices, and growth in non-oil sectors, which bodes well for further foreign capital inflows in the coming periods, especially with the completion of its inclusion in global indices and the facilitation of direct access procedures.
