Non-institutional foreign ownership ex-Aramco rises to 11.25%

Non-institutional foreign investors increased their stake in Tadawul-listed equities outside Saudi Aramco to 11.25% last week, from 11.18% the prior week, according to exchange data. The holdings reached SAR 358.32 billion, a new high for the metric that strips out the kingdom’s largest company.

The rise is small in percentage terms but represents a continuation of a gradual trend. Foreign non-institutional ownership – a category that includes individuals, family offices, and funds not classified as institutional – has climbed from roughly 10% two years ago, despite periodic pullbacks on geopolitical news. The exclusion of Aramco matters because the oil giant accounts for nearly 15% of Tadawul’s total market capitalization. Ex-Aramco measures give a cleaner read on foreign appetite for the rest of the Saudi corporate sector.

Non-institutional foreign investors are a smaller slice than their institutional counterparts – institutional foreign ownership sits above 20% – but the group is seen as a leading indicator of broader foreign interest. When retail and smaller fund flows rise, it often precedes or accompanies wider institutional allocation, traders say. Last week’s increase came during a period of relative calm in oil markets and steady progress on Saudi Vision 2030 projects, factors that tend to support non-institutional flows.

The data is published weekly by Tadawul and offers one of the few public glimpses into foreign positioning by investor type. The ex-Aramco series was introduced in 2021 to isolate the effect of the kingdom’s dominant stock. Since then, it has risen steadily, interrupted by short-lived dips in late 2022 and mid-2024.

For context, total foreign ownership (institutional plus non-institutional, including Aramco) stood at about 12.5% last week. The gap between total and ex-Aramco reflects Aramco’s heavy weighting and the fact that most foreign ownership of the oil giant is institutional. Non-institutional flows into Aramco remain limited due to the stock’s high price and limited free float outside the government.

What drove last week’s gain? Tadawul saw eight block trades worth SAR 27.4 million on Monday, according to exchange disclosures, suggesting some repositioning among larger non-institutional accounts. Broader factors include the continued rollout of Tadawul’s derivatives market, which gives foreign investors hedging tools, and the inclusion of Saudi stocks in emerging-market indexes, which has boosted awareness.

The 11.25% reading is still below the peak of 11.5% touched in early 2024, before a wave of selling related to elevated Middle East tensions. That the metric has recovered to near those highs without a major catalyst suggests steady buying, rather than a speculative spike.

Non-institutional foreign ownership excludes sovereign wealth funds, pension funds, and other large institutions. It is tracked by some strategy desks as a proxy for “sticky” foreign money – smaller holdings that tend to stay put through short-term volatility. Last week’s number suggests that cohort is comfortable adding exposure to Saudi names beyond the energy sector.

Tadawul releases the figure every Sunday at 4:30 PM Riyadh time, alongside total foreign ownership and the institutional breakdown. The next update is due three days from now.