Investors anticipate significant surge in Saudi equity market. Focus on index inclusion, reform and rising corporate profitability

“This rally is underpinned by fundamental factors such as corporate earnings growth and supportive themes in a number of sectors,” said Shakeel Sarwar, Head of Equities Asset Management at SICO BSC (c). “The market was relatively quiet during 2017 but started to pick up towards the end of the year with the expansionary budget announcement. This year, the market is up 15% mainly on the back of news surrounding the Saudi market’s upgrade by FTSE and MSCI, which is expected to result in passive fund inflows of US$15 billion. Large capital liquid stocks, which are set to prominently feature in the indices, have been the main beneficiary of the rally.” 

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