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🇸🇦 Saudi Arabia /Economy & Trade

Saudi Market Reshaped by Institutional Liquidity, Domestic Factors

From Asharq Al-Awsat · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Context piece
  • Saudi Arabia's financial market is shifting from short-term speculation to institutional investment, driven by domestic factors and reforms under Vision 2030.
  • The sukuk market is rapidly expanding, becoming a key funding tool for Vision 2030 projects and attracting foreign investors.
  • High interest rates are making investors more selective, favoring companies with strong cash flow and stable dividends, while opportunities exist in mid-sized companies and sectors like education and industry.

Asharq Al-Awsat observes a significant transformation within the Saudi financial market, moving beyond its traditional reliance on oil cycles. The shift towards institutional investment, managed portfolios, and sukuk signifies a maturing economy increasingly driven by domestic structural factors.

What distinguishes the Saudi market today is that growth is increasingly driven by local structural factors, not just oil cycles.

· Ahmed Al-MohaisenExplaining the shift in Saudi Arabia's economic drivers.

Ahmed Al-Mohaisen, CEO of Ashmore Investment Saudi Arabia, highlights the resilience of the Kingdom's economy amidst global uncertainties, attributing it to a strong fiscal position and the ambitious Vision 2030 reforms. The expansion of the sukuk market, with a 35 percent increase in issuances in 2025, underscores its growing importance as a funding mechanism for major projects and a magnet for foreign capital seeking stable returns.

Al-Mohaisen's analysis points to a more discerning allocation of capital, with investors prioritizing companies demonstrating robust valuations and growth potential. The impact of high interest rates is reshaping investor appetite, pushing them towards more selective equity investments and favoring businesses with strong cash flows over highly leveraged entities. This environment, while challenging for some, presents unique opportunities, particularly in sectors like education and industry, and within mid-sized companies often overlooked by broader market attention.

The Saudi sukuk market is maturing rapidly, with issuances rising 35 percent in 2025 to around $72.5 billion.

· Ahmed Al-MohaisenHighlighting the growth and importance of the sukuk market.

From our perspective at Asharq Al-Awsat, this evolution is not merely an economic adjustment but a strategic recalibration of Saudi Arabia's financial landscape. The focus on domestic drivers and the deepening of capital markets reflect a proactive approach to sustainable growth, positioning the Kingdom as an increasingly attractive destination for both local and international investment, independent of global oil price fluctuations.

The market is not facing a shortage but rather a more selective allocation of capital toward companies and sectors with stronger valuations and growth prospects.

· Ahmed Al-MohaisenDescribing the current liquidity situation in the Saudi market.
About this summary

Originally published by Asharq Al-Awsat in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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