Post by : Naveen Mittal

Saudi Stocks Surge Amid Foreign Ownership Reform Hopes; UAE Markets Rebound

Saudi Arabia's stock market continued its upward momentum on Thursday, driven by investor optimism following reports that the Capital Market Authority (CMA) is considering lifting the 49% foreign ownership cap on listed companies. The benchmark Tadawul All Share Index (TASI) rose 1.1%, building on its largest single-day gain in over five years. This potential reform is expected to attract significant foreign investment, potentially exceeding $10 billion, and could lead to a reweighting of Saudi stocks in MSCI indices.

Key banks led the gains, with Al Rajhi Bank surging more than 5% and Saudi National Bank climbing 4.4%. Analysts suggest that easing foreign ownership restrictions would enhance liquidity and valuation prospects for Saudi equities.

UAE Markets Rebound on Bargain-Hunting

Meanwhile, UAE markets experienced a rebound as investors engaged in bargain-hunting following recent declines. Dubai's main index rose 0.3%, supported by gains in Emirates NBD Bank, Salik, and Tecom Group. In Abu Dhabi, the index edged up 0.2%, driven by modest increases in companies like International Holding Company and ADNOC Drilling.

The rebound in UAE markets reflects renewed investor confidence and a positive outlook for the region's economic recovery.

Regional Market Trends

While Saudi Arabia and the UAE saw positive movements, other Gulf markets displayed mixed performances. Qatar's market dropped 0.4%, hitting a two-month low, with all sectors in decline, notably Industries Qatar and Qatar Islamic Bank. Analysts attribute this downturn to profit-taking and regional uncertainties.

Overall, the Gulf region's stock markets are navigating a complex landscape of reform-driven optimism and cautious investor sentiment. The potential policy changes in Saudi Arabia have injected a renewed sense of confidence, particularly in the financial sector, while UAE markets are benefiting from strategic investments in key industries.

Saudi Stock Market, UAE Stock Market, Foreign Investment, Capital Market Authority, Tadawul Index, Al Rajhi Bank, Emirates NBD, MSCI Index, Gulf Markets, Stock Rally