Third Quarter | 2025

For years we have argued that Saudi Arabia would eventually ease its foreign ownership limits on listed equities. That moment now appears close, and the market has rallied on the expectation. We welcome the change as a meaningful step in the continued deepening of Saudi capital markets, and we expect it to draw further foreign capital into the market over time. The shape of those inflows, though, is more likely to be gradual than sudden. Even if foreign ownership limits are fully lifted, Saudi's weight in the MSCI EM Index would return to roughly where it sat between 2022 and 2024, and active foreign investors have been steadily closing their underweights for years. Much of the inflow associated with this development has already been happening, just quietly. One large Saudi bank is positioned to benefit disproportionately, and across the wider market we continue to find value. We remain optimistic on Saudi and on the region's longer-term potential.