Saudi Securities Authority expects foreign ownership ceiling increase to 75% or removal, Morgan Stanley estimates $4.3 billion inflow
Morgan Stanley projects lifting Saudi listed companies' foreign ownership limits could bring billions in investment funds following the appointment of Maad Al-Shemary as chairman.
The Saudi Securities Authority is preparing a regulatory shift that could significantly alter capital flows in its stock market. Foreign investors currently face a 49% ownership cap on listed companies, but officials are actively considering raising this limit to 75%. Morgan Stanley analyzed potential impacts of such changes, predicting that increasing the ceiling would attract approximately $4.3 billion in indicator-based funds. If the authority removes the upper limit entirely, inflows could reach $7.4 billion according to the same analysis. These projections follow the appointment of Maad Al-Shemary as chairman of the Securities and Commodities Authority. Al-Shemary's selection signals a strategic push to enhance Saudi Arabia's market appeal and attract foreign capital. Analysts view these regulatory adjustments as critical for converting new opening measures into consistent investment demand. The initiative targets long-term growth by deepening market participation from international entities.
