International fund managers have taken a pause on allocating new money to Saudi Arabia, amid a weaker stock market and concerns about earnings growth next year.
While fund ownership of Saudi stocks hit a record high in 2025, growth has tapered in recent months, according to Copley Fund Research. The UAE attracted $2.2 billion in net fund inflows in the year to the end of November, compared to $679 million for Saudi Arabia, Copley data showed.
The kingdom missed out on a rally in emerging market stocks this year and analysts expect a similarly moribund performance in 2026. That’s having a knock-on effect on new companies coming to the market, with the wave of IPOs in Saudi Arabia seeming to lose momentum, even as the stock exchange insists it has a “vibrant” pipeline of companies preparing to list next year.
Saudi Arabia’s IPO boom had been one of the successes of the country’s efforts to open up to foreigners after decades of largely shutting out international capital. More recently though, government plans to trim spending, a review of Public Investment Fund projects, and flip-flops on measures to attract global investors have cooled enthusiasm.