Saudi Arabia may relax foreign investment holding policies, Morgan Stanley expects over $10 billion in capital inflow

The Saudi benchmark stock index surged 5% on Wednesday, following reports that the country may soon allow foreign investors to hold a majority stake in listed companies. All industry sectors recorded gains, with Saudi bank stocks achieving the largest single-day increase in history, soaring 9%. Saudi Arabia is expected to raise the foreign ownership limit before the end of the year, aiming to revitalize the sluggish stock market and attract more overseas capital to support Crown Prince Mohammed bin Salman’s economic diversification plan. JP Morgan predicts that if the Saudi Capital Market Authority raises the foreign ownership limit from the current 49% to 100%, it could bring in $10.6 billion in capital inflows