The Scoop
Saudi Arabia’s sovereign wealth fund is considering share sales this year for a raft of companies it controls, pinning its hopes of raising additional sources of cash on parallel government efforts to revive the local stock market by attracting more foreign investors.
Public Investment Fund (PIF) has historically used the proceeds of selling down parts of its domestic portfolio for new investments. Over the past five years, it has raised several billion dollars from local stock sales, which helps it pay for gigaprojects at home and deals abroad. PIF also raises money from borrowing on the capital markets, transfers from the government, and returns from its investments.
PIF has earmarked as many as eight companies — including Arcelor Mittal Jubail, a metal pipes producer, events management company Sela, Saudi Global Ports, Alkhorayef Petroleum, and Cloudkitchens — for IPOs this year, according to people familiar with the matter.
Richard Attias & Associates, the organizer behind the kingdom’s flagship Future Investment Initiative conference, is also working towards an IPO in 2026, along with district cooling firm Saudi Tabreed. In addition, PIF is considering a sell-down of stakes in several already listed companies including Riyad Bank, one of the largest lenders in the kingdom, according to the people. Saudi Agricultural and Livestock Investment Company, a PIF-controlled firm, is meanwhile mulling a selldown of part of its 16% stake in dairy company Almarai, the people said. PIF transferred the stake in Almarai to SALIC in 2021.
No final decisions on any share offerings or sell-downs have been made, and the timing of any transactions will depend on market conditions, the people said. PIF declined to comment.
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Matthew’s view
Reviving the domestic stock market in 2026 will be key for Saudi Arabia, which in addition to issuing debt has used equity sales to fund economic diversification projects.
The kingdom’s market regulator is enacting a fresh wave of measures to encourage foreign investment in the country’s stock market after the index declined 13% in 2025 and was flat in 2024, lagging global emerging market peers.Foreign investors will be allowed to invest directly in Saudi stocks starting next month, and the regulator is reviewing rules that cap foreign ownership of companies at 49%. These steps are expected to provide a boost: Traders and analysts predict $10 billion of inflows.
The Saudi stock market, known as Tadawul, has reacted positively and is up around 4% so far this year. But trading volumes remain low, with investors remaining cautious about the impact of lower oil prices, government spending cuts, and the outlook for corporate earnings.
New listings in particular have lost their luster in recent months. Several recent IPOs on the Saudi stock market have performed poorly, with shares falling below their offer price. Secondary offerings from companies that are already public have also struggled: PIF-controlled Mecca real estate developer Umm Alqura was only able to raise half of what it was offering last month. Shares in the company are trading about 10% below the offer price.
That has led to some degree of caution about how many deals the stock market will be able to absorb.
IPOs are still considered the most favoured route for PIF, but the fund is also open to talks with private investors to raise cash, the people said.
Notable
- There is a “promising” pipeline of IPO deals in the Gulf, including Saudi Arabia, according to Citigroup, but the market needs to “re-establish confidence”, Bloomberg reports.
- Saudi Arabia will lift restrictions on foreign investors from Feb. 1, as part of efforts to attract more overseas capital, says Reuters.