Foreign institutions' purchases in Tadawul amounted to 1.7 billion riyals
The Saudi stock market (Tadawul) witnessed a significant shift in liquidity during the week ending February 12, 2026, with official data revealing a strong trend among foreign institutions to bolster their investment positions in listed companies. The weekly report on ownership value and trading volume showed that net purchases by foreign institutions in the main market jumped to approximately SAR 1.7 billion , reflecting growing confidence in the strength of the Saudi economy and the promising opportunities offered by the financial market.
Details of trades and foreign share
According to the detailed data in the report, foreign institutions accounted for a significant share of market activity, with their purchases representing 45.7% of total purchases in the main market, while their sales accounted for 38.07%. This large difference between the two percentages is what generated net purchases in the billions, indicating a clear accumulation strategy by foreign funds and portfolios.
In contrast, the performance of foreign individual investors varied, as they recorded a slight net sale of about 31.2 billion riyals, although their direct purchases amounted to 389.7 million riyals, constituting 1.75% of the total market trading.
Behavior of local investors: Profit-taking and position swapping
On the other side of the equation, the data showed a selling trend among local investors, a natural behavior that often occurs during periods of hot foreign capital inflows, as local investors tend to take profits or rebalance their portfolios. Net sales by Saudi individuals reached approximately SAR 1.38 billion , while Saudi institutions recorded net sales of SAR 471 million. This reciprocal movement between foreign and local investors contributes to creating the necessary balance and liquidity for market depth.
The economic impact of market liberalization and future prospects
This significant influx of foreign liquidity comes at a crucial juncture, directly linked to the strategic decision, effective February 1, 2026 , to open the Saudi financial market to all categories of foreign investors, enabling them to invest directly without previous restrictions. This step is part of the objectives of the Financial Sector Development Program within the Kingdom's Vision 2030, which aims to transform the Saudi financial market into an advanced and attractive destination for global investment.
This opening is expected to increase the weighting of the Saudi market in global indices (such as MSCI and FTSE), enhance transparency and governance, and boost daily liquidity. The injection of SAR 1.7 billion in a single week is a positive initial indicator of international investor appetite, and this trend is likely to continue as global funds absorb the new facilities and the opportunities inherent in the market's leading sectors.
