Saudi Arabia Could Attract $7 Billion as Money Market Funds Curb Overseas Investments

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Saudi Arabia could attract up to $7 billion in capital after new regulations limiting the overseas investments of public money market funds, according to estimates from major financial institutions.

Bank of America said the rules introduced by the Saudi Capital Market Authority could redirect approximately $7.2 billion (27 billion Saudi riyals) in overseas investments to the Kingdom over the next two years.

التدفقات الاستثمارية الأجنبية في السعودية تصل إلى 7 مليارات دولار خلال الربع الأول

Argaam Capital estimated the potential shift in investment flows at between $5.06 billion and $7.2 billion (19 billion and 27 billion Saudi riyals). Al Rajhi Capital, meanwhile, put the figure at approximately $6.13 billion (23 billion Saudi riyals), Bloomberg reported.

Saudi Arabia’s public money market fund industry has expanded rapidly, with total assets growing 57% year-on-year in 2025 to approximately $20.53 billion (77 billion Saudi riyals), according to the Capital Market Authority’s annual report.

صندوق النقد: توقعات بنمو الاقتصاد السعودي إلى 5.5% في 2027

Under the new rules, funds must limit investments outside Saudi Arabia to no more than 5% of net asset value. Non-compliant funds have been granted up to two years to adjust their portfolios and meet the requirement.

Funds with overseas investments exceeding 20% must first reduce that proportion to below 20% within six months before gradually bringing it down to the 5% limit.

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