Overview

• Bloomberg reported that the Capital Market Authority is preparing to allow majority foreign stakes by eliminating the current 49% cap on listed companies.
• CMA board member Abdulaziz Abdulmohsen Bin Hassan was quoted saying the change could take effect before the end of the year.
• The Tadawul jumped about 5.1% to 11,426.5, its strongest one-day rise since 2020, with roughly SAR 14.5 billion in turnover and major banks such as Al Rajhi and Saudi National Bank hitting the 10% daily limit.
• UBS estimated that a full removal of the cap could draw roughly $9.5 billion to $10 billion in passive inflows from MSCI and FTSE index trackers.
• The potential reform aims to deepen liquidity and raise Saudi Arabia’s index weight as the market lags this year, down about 9.6%, and follows earlier steps expanding access for Gulf investors and certain real estate-linked listings.