Alhaqbani highlighted that the Kingdom accounts for more than 239 of the 500-plus companies listed in the regional index, giving it a liquidity weight in excess of 60 per cent and a total index weight of around 73 per cent. He further observed a step-up in free-float market capitalisation from SR 1 trillion in 2019 to SR 2 trillion by 2024, and a rise in the number of listed companies from 199 to more than 260 over that period.
The outlook for international investor participation also drew attention, with Alhaqbani pointing to the growth in Qualified Foreign Investor holdings from SR 338 billion to over SR 400 billion. At the same time, the Kingdom’s share in global indices moved from 2.8 per cent in 2018 to 3.5 per cent in the latest measurement.
Underlying this progression is the role of the Public Investment Fund and partner institutions in heightening the appeal and accessibility of the capital markets. Alhaqbani described exchange-traded funds as “the windows and doors to the Saudi capital market,” pointing out that 12 ETFs across multiple asset classes are now available in four countries.
These developments coincide with structural changes in market infrastructure and regulation. The Saudi Tadawul Group, which oversees the primary securities exchange, noted that regulatory enhancements under the national Vision 2030 framework have broadened access, deepened liquidity and diversified investment options. This environment has encouraged global asset-managers to engage. For example, Goldman Sachs Asset Management reported “productive” talks with the PIF and emphasized the importance of a long-term local presence in building regional partnerships.
Despite the strong narrative, analysts caution that the dominance carries risks. A concentration of index weight means that market performance in the Kingdom can exert outsized influence on regional benchmarks, potentially magnifying swings. Liquidity, while elevated, remains variable and may still be challenged under stressed market conditions or sharp policy shifts. Observers note that sustaining growth will depend on consistent regulatory transparency, broader corporate governance standards and more diverse listing pipelines beyond the largest national champions.
Global investors appear attentive to the signals. The growing free-float capitalisation and elevated foreign-investor holdings suggest the Kingdom is transitioning from a predominantly domestic-driven market toward one with stronger global integration. The presence of multiple ETFs and the expansion of international access frameworks are viewed as enablers of this evolution.
Looking ahead, market participants expect the interplay between domestic reform, global capital flows and technological innovation to shape the Kingdom’s trajectory. The PIF’s role in fostering innovation and data-driven investment strategies was highlighted as a key enabler of the next phase of market development. Alhaqbani noted that systematic strategies, including those powered by artificial intelligence and advanced analytics, have grown in importance compared with traditional approaches.
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Saudi Arabia