Saudi Investors Increase US Equity Exposure Amid Domestic Market Decline

Saudi investors significantly increased their participation in U.S. stock markets during the final quarter of 2025, with transaction volumes in U.S. equities rising by 38% compared to the prior quarter, according to internal financial monitoring data. This surge occurred amid a sharp 12.4% decline in the Tadawul All-Share Index, which weakened due to reduced government spending and elevated geopolitical tensions affecting regional energy flows. The outflow from local assets coincided with a 22% rise in net purchases of U.S. blue-chip stocks, particularly in technology and financial sectors, with firms like Apple Inc. (AAPL), Microsoft Corporation (MSFT), and JPMorgan Chase & Co. (JPM) among the top beneficiaries. The reallocation trend underscores a growing preference for diversification among high-net-worth individuals and institutional investors in Saudi Arabia, who are seeking stable, liquid markets amid domestic economic uncertainty. Data shows that U.S. equities now represent 24% of Saudi investors’ total foreign portfolio holdings, up from 17% at the start of 2025. This shift is also supported by improved cross-border trading infrastructure and increased access through major regional investment platforms. Market analysts note that the heightened U.S. trading activity may signal a long-term strategic pivot toward global equity exposure, especially as Saudi Arabia continues its Vision 2030 reforms. The inflow of capital has contributed to a 1.6% increase in average daily trading volume on the New York Stock Exchange for accounts linked to Saudi investors. Financial institutions with Middle East desks, including a major Riyadh-based asset manager and a pan-GCC investment house, reported a 45% increase in client requests for U.S.-focused portfolios over the same period.