Saudi US stock trading soared to SR164.3 billion ($43.8 billion) in the first quarter, almost tripling from last year. This rise highlights Saudi investors’ growing appetite for American equities and global diversification.
The Capital Market Authority reported US markets now dominate Saudi foreign trading activity. Out of SR166.2 billion total foreign trades, almost 99 percent targeted American stocks. By contrast, GCC markets recorded SR953 million in trades. Asian and European markets saw SR81 million and SR254 million, while Arab markets remained minor at SR13 million.
Stock trading growth links directly to strong performance in American technology companies. The “Magnificent 7” tech giants posted excellent earnings and upbeat forecasts, fueling confidence among Saudi investors. With global markets showing renewed strength, Saudis increased their US equity investments significantly.
In addition, clarity in US monetary policy encouraged more Saudi trading in US equities. The Federal Reserve held interest rates steady, and many investors expect rate cuts later this year. This stability reduced uncertainty, making US markets even more attractive for Saudi investors.
Advanced trading platforms and wider access to financial research also supported Saudi US stock trading. Improved technology lowered entry barriers and allowed Saudi investors to trade global markets with ease. More high-net-worth individuals and institutional funds are diversifying portfolios beyond the Gulf to minimize risks.
During the quarter, Saudi US stock trading made up nearly 18 percent of all Saudi equity activity worldwide. While local trading volumes reached SR730.6 billion, foreign exposure continues rising steadily each year.
The Saudi Exchange recently introduced Saudi Depositary Receipts, which let investors trade foreign shares in riyals. This innovation aims to deepen ties between local and global markets, making foreign investments more convenient for Saudis.
Clearly, Saudi US stock trading reflects a shift in investor behavior. Saudi traders increasingly seek global opportunities, focusing on US markets as their primary international destination.
As Saudi US stock trading grows far beyond previous peaks, this trend underscores the Kingdom’s evolving investor base. It marks a strong move toward financial globalization and a mature global market perspective.
