Saudi Arabia's stock market: Market capitalization rises by 747 billion riyals in January 2026
The Saudi stock market recorded a significant leap in performance at the start of the year. The monthly report issued by Tadawul (the Saudi Stock Exchange) on investor ownership and its percentage of total market capitalization revealed remarkable growth in the market value of listed shares. The total value reached approximately SAR 9,564.61 billion by the end of January 2026, representing a monthly increase of about 8.5%, equivalent to market gains exceeding SAR 747 billion compared to December 2025 levels.
Growth in foreign investment and strengthening international confidence
Official data showed that the Saudi market continues to be attractive to international investors, with foreign investor ownership accounting for 4.87% of the total market capitalization of listed shares as of January 29, 2026. This figure reflects the success of the structural reforms undertaken by the financial market in recent years, which aimed to facilitate the entry of qualified foreign investors and raise the level of transparency and governance in line with global standards.
In detail, for the week ending January 29, 2026, foreign investment was heavily inclined towards buying, with net purchases by qualified foreign investors in the main market reaching approximately SAR 1.52 billion . Qualified investors accounted for the lion's share of transactions, representing about 39.05% of total market purchases during the week, compared to 34% of total sales, thus confirming the optimistic outlook of international financial institutions regarding the Saudi economy.
Local investor movement and portfolio rebalancing
On the other hand, local investors engaged in profit-taking and portfolio rebalancing following the market's strong gains. According to the weekly report on equity value and trading volume, Saudi individuals recorded net sales of approximately SAR 1.16 billion . Meanwhile, Saudi companies recorded net sales of approximately SAR 634.4 million during the same period.
The economic context and the importance of the event
These figures are particularly significant as Saudi Arabia strives to achieve the goals of Vision 2030, which prioritizes developing the financial sector and deepening the stock market. The market capitalization reaching nearly SAR 9.6 trillion reinforces Tadawul's position as one of the largest financial markets in the Middle East and North Africa region, and among the largest emerging markets globally.
Analysts point out that the massive increase in market capitalization within a single month reflects the strength of the Saudi economy and the diversity of investment opportunities in leading sectors such as energy, banking, and basic materials, in addition to new and promising sectors. Furthermore, the increased inflow of foreign capital is a vital indicator of the successful inclusion of the Saudi market in global emerging market indices (such as MSCI and FTSE), ensuring a steady flow of funds from global investment funds that track these indices.
In conclusion, the January 2026 report shows that the Saudi financial market is going through a phase of maturity and rapid growth, supported by a strong regulatory environment and increasing confidence from both local and foreign capital.
