Riyadh – Mubasher: Data from the Saudi exchange (Tadawul) as of 13 October 2026 indicates a significant concentration of international capital within specific high-growth sectors, resulting in the exhaustion of foreign investment capacity for several key constituents.
Rasan Information Technology Company currently leads the market in foreign ownership density, with international investors holding 42.97% of the company.
Despite the statutory foreign ownership limit being set at 49%, the available investment capacity for Rasan has reached 0%, signaling an institutional crowding effect that effectively prevents further net inflows from non-resident investors.
A similar trend is observed in the industrial and technology segments, with East Pipes Integrated Company for Industry reporting a foreign ownership level of 32.82%, yet also shows 0% available capacity against its 49% limit.
This pattern extends to Al Babtain Power and Telecommunication Company as well as Edarat Communication and Information Technology Company, which record foreign holdings of 28.06% and 24.33% respectively, both reaching the 0% availability threshold.
The discrepancy between the current ownership percentage and the 49% limit, while still resulting in zero availability, often reflects specific internal bylaws or regulatory constraints that cap the maximum permissible foreign allocation below the standard national ceiling.
The exhaustion of capacity in names like Rasan and East Pipes suggests that institutional appetite for specialized Saudi equities is outpacing the current structural limits.
For these companies, the inability to accommodate further international buying may necessitate a review of investment limits to sustain the momentum of foreign capital inflows and ensure continued liquidity from global asset managers.
