$9.48 billion assets of foreign index funds invested in the Saudi market


Foreign index funds raised their holdings of Saudi stocks During the third quarter of this year, 7.7%, compared to what it was at the end of the second quarter.

The value of the assets of foreign index funds invested in the Saudi stock market amounted to 9.48 billion dollars at the end of the third quarter, in light of the low interest rate, the rise in shares and oil prices, and the expectations of a recovery in the Kingdom’s economy.

According to the audited data of the “Morning Star Direct” platform, fund managers reduced their holdings of shares of emerging market companies by $3.1 billion, during the third quarter of this year, and redirected part of that liquidity to the Saudi stock market, according to the Saudi newspaper, “Al-Iqtisadiah”.

According to the monitoring, the increase in the value of Saudi stock assets, which is in the possession of foreign funds in the third quarter, amounted to $685.2 million.

The data of the “Morning Star” platform revealed the presence of cash flows coming from 157 funds in the category of index funds, after the Saudi stock market attracted at least nine new funds during the third quarter, where the most prominent of these new funds was the emerging markets fund managed by Signia. South African.

Fund managers allocated 2.2% of the total assets of funds “investing in emerging markets” amounting to 423.9 billion dollars, to invest in the Saudi stock market.

The funds covered by the monitoring were managed by 31 asset management companies and global banks by the end of the third quarter, an increase of 19.2%, compared to the second quarter. Knowing that five funds – out of the 157 funds – invest between 64 and 100% of the fund’s assets in Saudi stocks.

While most of the funds preferred to invest in Saudi stocks, through emerging market funds that are distinguished by investing in each stock market that was promoted through the indices of “FTSE Russell”, “Standard & Poor’s Dow Jones” and “MSCI”.


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