How do foreign investors in the Saudi Stock Exchange behave during regional wars?

10/03/2026 04:44 AST

Foreign investors' behavior in the Saudi stock market varies during periods of war or geopolitical tension in the region.

In the first week after the outbreak of the Iran war, foreign investors recorded net sales of nearly SR1 billion ($266 million), according to a study by Al-Eqtisadiah newspaper.

According to Al-Eqtisadiah's Financial Analysis Unit, foreign investors have exhibited inconsistent behavior during the last four wars or periods of regional tension, recording net sales twice and net purchases twice.

Previous tensions
On Sept. 14, 2019, facilities belonging to the Saudi oil giant Aramco were attacked. Foreign investors recorded net purchases of SR2.8 billion in the first week following the raid.

Aramco had not yet been listed on the stock exchange at that time, and this coincided with the beginning of the Tadawul All Share Index's inclusion in emerging market indices, which encouraged buying and seizing opportunities.

During the Gaza War, which erupted on Oct. 7, 2023, foreign investors recorded net sales of SR1.8 billion by the end of the following week.

During the first week of the first Israeli-US war against Iran in June 2025, foreign investors recorded net purchases of SR1.3 billion.

Latest tensions
The first week following the second Iran War, which began on Feb. 28, foreign investors recorded net sales of SR916 million.

These sales occurred despite TASI rising 0.6 percent last week, driven by gains in most companies, most notably Saudi Aramco, which benefited from a nearly 29 percent increase in oil prices since the war began.

Saudi stock buyers, sellers during the first week of the war

In detail, Saudi and foreign investors recorded net sales of SR1.95 billion and SR916 million, respectively, on the TASI last week.

In contrast, Saudi institutions purchased shares worth SR 2.9 billion.

Arab News