The Saudi stock market continued its poor performance in the second quarter of 2025, with the average daily trading value falling by 34% compared to the same period in 2024, to $ 1.5 billion, which was influenced by the drop in oil prices, according to “Bloomberg Intelligence”. But she noted that the share of foreign investors – non -gulfs – despite this decline in the activity of total purchases, has increased to 35%, reflecting the success of the government’s efforts to attract foreign capital. The impact of oil according to the data of the ‘Saudi Stock Exchange’, the average daily trading value (Advt) during the second quarter was 1.5 billion dollars, in a clear drop that reflects the weakness of investors’ appetite for local equities. The Saudi Deposit Certificates (SDRs) are one of the initiatives that can stimulate the short -term trading activity through the opportunity for local investors to trade foreign securities locally. In the long run, the privatization program within the “Vision 2030” is expected to be the most important engine for the growth of liquidity, as well as the development of the structural market structure more efficient. The Saudi economy remains very dependent on oil income used to finance public spending and stimulate the private sector. As a result, the continued drop in oil prices can weaken the rate of investment and limit the trading activity in the market. The increase in the contribution of foreigners The share of foreign investors from outside the Gulf Co -operative Council countries increased to 35% of total equity purchases in the second quarter, an increase of 9 percentage points during the average year 2024, confirming the efficiency of government initiatives to improve the market attraction for world investors. On the other hand, the contribution of local investors has dropped from more than 75% to about 50%, despite the province of individual investors (retail) over their prominent role as they make up 53% of total activity during the second quarter. The role of deposit certificates on July 7 has announced the ‘Saudi capital market’ the launch of Saudi deposit certificates that allow local investors to access the shares of international businesses and trade it in the local market without a foreign investment account. These papers are issued by a deposit bank and are traded according to the regulations that are in force in the Saudi market, with the distribution of profits in Saudi -Riyal. This tool provides an additional way for foreign businesses to improve their access to local capital, contributing to the deepening of the merger of the Saudi market in the global financial system, and support the kingdom’s orientation to liberalize capital markets and expand the investor base. Financial analyst in “Al Sharq” Mary Salem, she believes that despite the increase in the part of foreign investors on the Saudi Stock Exchange, their impact on the daily trading volumes is limited as they are concentrated in their governors for a period of anticipation of the opportunity to leave or increase their concentration.
The Saudi Stock Exchange .. Laziness of trade sizes despite the large part of the foreigners
