Foreign investors are snapping up Saudi stocks after last month’s rush for the exit, as investors weigh attractive equity valuations against the impact of the Israel-Hamas war in the Middle East.
Net inflows have extended for a second week after October saw the largest monthly net redemptions of 2023, according to data from the stock exchange. International traders have bought 12.7 billion riyals ($3.4 billion) of Saudi stocks so far in November, after they sold 26 billion riyals the month prior, resulting in net outflows.
“Valuations in Saudi Arabia are not terribly stretched,” said Christian Ghandour, senior portfolio manager at Al Dhabi Capital. “If market perception of geopolitical risk reduces markedly, we may see more inflows into the regional markets.”
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