Foreign investors increase stake in Saudi equities despite market decline

On June 12, 2025, foreign investors in Saudi Arabia held SR394.58 billion ($105.2 billion) in equities, experiencing a minor annual decline of 1.1%. Despite this dip in ownership, foreign investors' market share actually increased from 4.01% to 4.32%, attributed to an overall decline in the total market size, which fell from SR9.95 trillion to SR9.14 trillion. This scenario reflects the resilience of foreign investment amidst challenging market conditions. Additionally, Saudi Arabia is actively working on enhancing its energy security and achieving sustainability targets. Minister Al-Jadaan outlined a strategic reform plan for multilateral development banks to support global energy resilience, emphasizing the Kingdom's goal of generating 50% of its electricity from renewable sources by 2030. Moreover, he reiterated the ambition to achieve net-zero emissions by 2060, reflecting Saudi Arabia's commitment to addressing climate change. In line with these goals, the Kingdom is also looking to boost international partnerships through various initiatives. This includes an agreement with Turkiye's Ministry of Industry and Technology to advance sustainable manufacturing and infrastructure. These efforts align with the country's broader Vision 2030 strategy, which aims to diversify its economy and reduce dependency on oil revenues. Part of the ongoing changes includes a significant focus on aircraft acquisition and the development of a strong aviation sector. In recent weeks, there have been revelations such as signing a bilateral air services agreement with Panama and a leasing deal for new aircraft. These agreements reflect Saudi Arabia's commitment to expanding its aviation services and strengthening its position as a major global aviation hub, aiming to transport 330 million passengers annually by 2030.