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US Institutions Expand Footprint in Saudi Financial Sector, Nearing a Third of Total Foreign Holdings 

A man walks past the logo of Tadawul. (AFP)
A man walks past the logo of Tadawul. (AFP)
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US Institutions Expand Footprint in Saudi Financial Sector, Nearing a Third of Total Foreign Holdings 

A man walks past the logo of Tadawul. (AFP)
A man walks past the logo of Tadawul. (AFP)

Prince Mohammed bin Salman, Saudi Crown Prince and Prime Minister, arrived in Washington on Tuesday for talks with President Donald Trump and a Saudi-US investment summit, reinforcing the strategic weight of the financial partnership between the two countries, which is an essential pillar of Saudi Vision 2030.

The Crown Prince’s trip is not merely a diplomatic engagement; it reflects the deepening economic cooperation aimed at transforming Saudi Arabia into a global financial center. Today, 17 major US financial institutions operate in the Saudi market, making the United States one of the Kingdom’s most influential strategic partners in the sector.

Saudi officials say this cooperation has helped lift the value of the Saudi financial market to over USD 3 trillion by 2024. US institutions now account for nearly 30 percent of foreign investment in the sector.

Saudi Arabia began gradually opening its financial markets to foreign investors in 2015, introducing the Qualified Foreign Investor (QFI) framework. Momentum accelerated in 2019, when Tadawul was added to the MSCI and FTSE Russell emerging-market indices, attracting tens of billions of dollars in passive inflows.

Reforms under Vision 2030 helped modernize market regulations, increase transparency, and encourage foreign institutional participation. Key initiatives include the launch of the Fintech Regulatory Sandbox in 2019 and the introduction of financial derivatives trading in 2020, both aimed at enhancing liquidity and reducing volatility while opening the door to advanced global market players.

As a result, US institutional participation expanded significantly, reaching about 30 percent of total foreign exposure to Saudi financial instruments.

Critical role

American institutions have played a critical role in developing the Saudi capital market through direct investment, knowledge transfer, support for liquidity, corporate-governance modernization, and infrastructure development. Their presence has strengthened market depth and increased the appeal of Saudi assets to global investors.

Cooperation with US banks has also bolstered Saudi Arabia’s exchange-traded funds (ETF) ecosystem and strengthened the Kingdom’s debt market, supported in part through partnerships with the Public Investment Fund (PIF). This has boosted foreign focus on Saudi bonds and contributed to deeper fixed-income markets.

US institutions were also instrumental in landmark market events, including the 2019 Aramco IPO, valued at USD 29.4 billion, the world’s largest public offering at the time. Related reforms and advisory support helped drive a 110 percent increase in foreign investment in 2018.

Saudi Arabia’s Capital Market Authority (CMA) has also benefited from US expertise in areas such as mergers and acquisitions, market-making regulations, and strategies to reduce volatility and strengthen market stability.

Liquidity, governance and financial inclusion

The growing partnership has elevated performance standards and transparency across the Saudi financial sector.

Enhanced liquidity and improved governance practices, ranging from risk-management frameworks to anti-financial-crime systems, have contributed to the rise of banking assets across Gulf Cooperation Council countries to USD 2.3 trillion.

Higher governance standards have also helped Saudi Arabia improve its financial inclusion index score to more than 60 points, according to the International Monetary Fund.

Leading US institutions operating in Saudi Arabia:

Several major US firms are now deeply embedded in the Saudi financial landscape, reflecting long-term commitments to the Kingdom’s economic transformation.

BlackRock

Global asset-management giant BlackRock has established one of the strongest presences in Riyadh among foreign financial institutions. It was the first major global investment manager to open a regional office in the Saudi capital and last year added Amin Nasser, CEO of Saudi Aramco, to its board of directors.

In 2024, BlackRock signed an MoU with the Public Investment Fund to establish a multibillion-dollar multi-asset investment platform in Riyadh, backed by an initial USD 5 billion commitment from PIF.

During the Future Investment Initiative (FII) last October, BlackRock and PIF announced a series of new joint investment funds through the BlackRock Riyadh Investment Management Platform, open to both domestic and international investors.

J.P. Morgan

J.P. Morgan, the largest US bank by assets, remains a key financial partner to Saudi Arabia. It holds two operating licenses in the Kingdom: a banking license from the Saudi Central Bank (SAMA) and a securities license from the Capital Market Authority.

The bank is active in advisory, asset management, and capital-markets activities, and continues to expand its role in both public- and private-sector financing.

Morgan Stanley

Morgan Stanley leverages its extensive expertise to enhance the global appeal of Saudi public offerings. The firm has participated in advising and managing several IPOs, including the upcoming listing of SITE, a PIF subsidiary.

In September, Tadawul Saudi Exchange approved the request submitted by Morgan Stanley Saudi Arabia to operate as a market maker on 52 listed stocks across both the Main Market and the Parallel Market (Nomu). The move enables the exchange to benefit from the firm’s technical capabilities, improve overall market efficiency, and narrow bid-ask spreads.

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Business

Saudi Arabia’s King Abdulaziz International Airport Hits Record 50 Million Passengers in 2025 

The 50 millionth passenger was a French national arriving from Paris on a Saudia flight to participate in a sports tournament in Jeddah. (SPA)
The 50 millionth passenger was a French national arriving from Paris on a Saudia flight to participate in a sports tournament in Jeddah. (SPA)
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Saudi Arabia’s King Abdulaziz International Airport Hits Record 50 Million Passengers in 2025 

The 50 millionth passenger was a French national arriving from Paris on a Saudia flight to participate in a sports tournament in Jeddah. (SPA)
The 50 millionth passenger was a French national arriving from Paris on a Saudia flight to participate in a sports tournament in Jeddah. (SPA)

King Abdulaziz International Airport recorded a new historic milestone, reaching 50 million passengers in 2025, marking the highest number ever recorded by a Saudi airport since the launch of civil aviation in the Kingdom, and placing it among the world's mega airports in terms of passenger numbers.

The achievement reflects the qualitative transformation at King Abdulaziz International Airport and its growing status as a regional hub and national gateway connecting the Kingdom to the world.

It underscores the airport's vital role in boosting Saudi Arabia’s position as a global tourist destination and a gateway to the Two Holy Mosques by facilitating the movement of visitors, Umrah performers, and pilgrims, and supporting the tourism sector in line with the objectives of Saudi Vision 2030 to diversify the economy and provide an exceptional travel experience.

The Jeddah Airports Company (JEDCO) celebrated the arrival of the 50 millionth passenger at King Abdulaziz International Airport, a French national arriving from Paris on a Saudia flight to participate in a sports tournament in Jeddah.

She was welcomed by JEDCO's leadership, who presented her with a commemorative gift to mark the occasion.

JEDCO CEO Eng. Mazen Johar said that reaching 50 million passengers reflects the airport’s high operational readiness and marks a pivotal milestone in preparations to double this figure in the coming years.

The achievement would not have been possible without the support and guidance of the Kingdom’s leadership, the continuous oversight of the Minister of Transport and Logistic Services, the Chairman of the General Authority of Civil Aviation (GACA), and the CEO of Matarat Holding, in addition to the efforts of all partners committed to providing quality services to passengers and visitors, he stressed.

Business

Egypt, Qatar's Al Mana Holding Sign $200 Million Sustainable Aviation Fuel Deal

A worker fills an Airbus jet with aviation fuel at Fuhlsbuettel airport in Hamburg, March 14, 2012. REUTERS/Fabian Bimmer/File Photo
A worker fills an Airbus jet with aviation fuel at Fuhlsbuettel airport in Hamburg, March 14, 2012. REUTERS/Fabian Bimmer/File Photo
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Egypt, Qatar's Al Mana Holding Sign $200 Million Sustainable Aviation Fuel Deal

A worker fills an Airbus jet with aviation fuel at Fuhlsbuettel airport in Hamburg, March 14, 2012. REUTERS/Fabian Bimmer/File Photo
A worker fills an Airbus jet with aviation fuel at Fuhlsbuettel airport in Hamburg, March 14, 2012. REUTERS/Fabian Bimmer/File Photo

Egypt signed a contract with Qatar's Al Mana Holding for a first-phase investment of $200 million to produce sustainable aviation fuel from used cooking oil in the Suez Canal Economic Zone at Ain Sokhna, Egypt's cabinet said on Sunday.

The project will be developed in three phases and will span 100,000 square metres in the Integrated Sokhna Zone on Egypt's Red Sea coast. The first phase will have an estimated annual production capacity of 200,000 tonnes, Reuters quoted the cabinet as saying in a statement.

The deal marks the first Qatari industrial investment in the Suez Canal Economic Zone, Egypt said.

Prime Minister Mostafa Madbouly said the project "reflects the positive momentum in relations between Cairo and Doha, driven by the shared political will to advance bilateral cooperation through joint investments and increased trade."

Last month, the real estate arm of Qatar's sovereign wealth fund said it would invest $29.7 billion to develop a luxury real estate and tourism project on Egypt's Mediterranean coast.

 

Business

Saudi Arabia Prepares to Allow Foreign Property Ownership in January

Riyadh, Saudi Arabia (Reuters)
Riyadh, Saudi Arabia (Reuters)
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Saudi Arabia Prepares to Allow Foreign Property Ownership in January

Riyadh, Saudi Arabia (Reuters)
Riyadh, Saudi Arabia (Reuters)

Saudi Arabia is preparing to enter a new phase of economic openness in the real estate sector, with the updated law regulating property ownership by non-Saudis set to take effect in January.

The law, approved by the Saudi cabinet in July, is a strategic step to regulate real estate ownership by non-Saudis, both individuals and entities. Its main objective is to boost the real estate sector’s contribution to gross domestic product and diversify national income sources away from oil, in line with Vision 2030 goals.

The General Authority for Real Estate, the body responsible for implementation, is currently drafting the executive regulations and defining the geographic scope of areas where foreigners will be allowed to own and invest in property. These details are expected to be announced before the law comes into force.

The new legislation also aims to retain global talent by enabling long term residency and improving urban and housing quality.

Scope of ownership

Saudi Minister of Municipalities and Housing Majed Al-Hogail said in a televised interview last week that the system allowing foreigners to own residential property would be implemented next month across all Saudi cities, except for four, Makkah, Madinah, Jeddah and Riyadh.

In those cities, ownership will be permitted in specific designated areas. Resident expatriates will be allowed to own one residential unit.

In contrast, the system offers broader flexibility in other economic sectors, with foreign ownership open across all Saudi cities without exception in the commercial, industrial and agricultural sectors.

Fahd bin Suleiman, executive director of non-Saudi property ownership at the authority, said in November that areas designated for foreign ownership in Riyadh, Jeddah and the holy cities of Makkah and Madinah were still under review and would be announced “very soon” alongside the executive regulations governing the new rules.

He said those areas would be “very wide” and include what are known as mega projects, with foreign ownership ratios expected to range between 70 percent and 90 percent.

Bin Suleiman added that buyers would be required to be Muslim to purchase property in the two holy cities, but would otherwise face limited restrictions.

“In general, there are no major conditions, and we do not want to impose constraints. When comparing the current law with the updated one, the difference will be clear,” he said.

Market expectations

Commenting on the imminent implementation of the updated system, several real estate experts told Asharq Al-Awsat that the law would generate additional demand for ready built housing units and increase liquidity in the property market.

They said it would also encourage international companies to establish headquarters and projects in the Kingdom, supporting economic activity and laying the foundation for a more stable and growing real estate sector.

They expect the positive impact to be most evident in Riyadh, Jeddah, Makkah, Taif and Madinah, as well as cities near tourist destinations, with initial effects emerging in the third and fourth quarters of 2026 and extending into 2027.

Real estate expert and marketer Saqr Al-Zahrani said the system’s implementation would mark a turning point for the Saudi property market by expanding the base of market participants and prompting many expatriates to move from renting to ownership, particularly in permitted cities.

This shift, he said, would create additional demand for ready built units and planned residential communities, boosting sales activity and market liquidity.

Raising property quality

Al-Zahrani added that opening commercial, industrial and agricultural ownership to foreigners across all cities would give international companies stronger incentives to establish operations in Saudi Arabia, supporting economic growth and long term real estate sector stability.

He said one of the first expected changes would be an improvement in property quality, as developers move toward higher specifications and better planning to meet the needs of a broader buyer base.

The market is also likely to see an increase in organized supply, driven by the entry of local and international investors and developers targeting new demand.

The updated system, he said, would support price stability, as ownership by expatriates and foreigners tends to be long term, reducing short term speculation.

It would also enhance transparency and governance through accompanying legal and regulatory controls, while creating wider opportunities for the financing sector to develop tailored products for expatriates and foreigners, boosting lending activity and liquidity.

Al-Zahrani said the announcement of the system’s implementation would trigger immediate inquiries and interest, but the real impact on transaction volumes would emerge gradually, with initial signs expected in the second quarter of 2026, as the first deals are completed.

Clear indicators such as higher trading volumes, faster project delivery and increased foreign investor participation are likely to materialize in the third and fourth quarters, once the market has absorbed the executive regulations and begun to interact with them in a stable manner.

He said the first year of implementation would be a transition period, with the strongest effects becoming evident in the second half of 2026 and beyond.

Varying impact by geography

Real estate expert Ahmed Al Faqih said the system’s impact would vary by location, with the strongest positive effects expected in the Makkah region and its cities, including Jeddah and Taif, as well as Madinah. Riyadh, he said, would also play a prominent role in attracting non-Saudi capital for both ownership and investment.

Al Faqih said capital targeting tourism investment would likely focus on cities near tourist areas, such as Taif, Abha and Jazan, as well as Tabuk due to its proximity to the Neom project.

He expects the first year of implementation to serve as a testing and evaluation phase, with the system’s impact becoming more evident in 2027. He said the law would support key Vision 2030 objectives, including income diversification and reducing reliance on oil, while creating hundreds of thousands of job opportunities for Saudi men and women.

System incentives

The updated law aims to regulate real estate ownership by non-Saudis in line with Vision 2030, attract foreign direct investment into the Saudi property market and increase the sector’s contribution to the economy.

It also seeks to retain global talent by enabling long term settlement, raise the contribution of non-oil sectors, support sustainable economic growth and improve urban living standards.

Under the law, non-Saudis are permitted to own property or acquire rights within geographic areas designated by the cabinet, based on a proposal from the Real Estate General Authority and approval by the Council of Economic and Development Affairs. This includes specifying eligible rights, maximum ownership ratios and related controls.

The law also allows a non-Saudi resident natural person to own one residential property outside the designated geographic scope, excluding Makkah and Madinah. Ownership in those two cities requires the buyer to be Muslim.

Non listed companies partly owned by non-Saudis are permitted to own property within the designated areas, including Makkah and Madinah, provided they are established under Saudi company law. They may also own property outside those areas for operational purposes or employee housing, as defined by the regulations.

Listed companies, investment funds and special purpose entities are allowed to own property across the Kingdom, including Makkah and Madinah, in accordance with rules issued by the Capital Market Authority in coordination with the real estate authority and other relevant bodies.

The law stipulates that its application does not affect rights granted under other systems, such as the Premium Residency Program or Gulf Cooperation Council agreements, and that foreign ownership does not confer any additional privileges beyond legal rights.

It also introduces a fee of up to 5 percent of the property transaction value for non-Saudi ownership, with details to be set out in the executive regulations.

Violations may result in fines or warnings, while providing misleading information can lead to fines of up to 10 million riyals and, in some cases, court ordered sale of the violating property.