5.1% TASI Rally Reflects Investor Confidence in Ownership Reform
Saudi Arabia’s Tadawul All Share Index (TASI) soared 5.1% to 11,426 on September 24, marking its most significant single-day gain in over five years. This rally was sparked by news that regulators may lift the 49% cap on foreign ownership of listed companies, a move that signals a bold shift in the Kingdom’s capital market strategy. The surge reflects growing investor confidence in the Saudi Stock Reform & M&A Outlook, with expectations that the policy pivot will unlock new avenues for strategic investment and deal-making.
Less than a month later, on October 16, TASI reached a new record high of 11,696.58, further reinforcing market optimism around the reform.
$10B in Foreign Inflows Could Fuel Domestic M&A Pipeline
This market response set the stage for deeper investor engagement, with analysts now forecasting that the proposed reform could unleash over $10 billion in foreign capital inflows. This liquidity injection is expected to energize the Saudi Stock Reform & M&A Outlook by enabling acquisitions, joint ventures, and strategic buyouts across sectors like energy, real estate, and technology. The shift from passive investment to active ownership could redefine corporate governance and operational alignment in the Kingdom.
Saudi Outbound M&A Hits $66.76B YTD — Up from $5.47B in 2024
Saudi Arabia’s outbound M&A activity has skyrocketed in 2025, reaching US$66.76 billion by the end of Q3. More than 12x the US$5.47 billion recorded in all of 2024. This dramatic rise now accounts for 7.1% of global cross-border deal value, underscoring the Kingdom’s emergence as a major player in international deal-making. Sovereign wealth funds, particularly the Public Investment Fund (PIF), are driving this momentum with bold acquisitions in gaming, tech, and consumer sectors.
EA Games Acquisition Pushes Saudi Q3 M&A to 13.93% of Global
Zooming in on Q3 2025, Saudi Arabia contributed US$59.15 billion in outbound M&A, representing 13.93% of global deal value (excluding domestic transactions). This quarterly spike reflects concentrated strategic activity and positions the Kingdom among the world’s most aggressive acquirers, with PIF continuing to anchor Saudi Arabia’s expansion into high-growth sectors.
The defining transaction behind Saudi Arabia’s outbound M&A surge this quarter is the US$55 billion acquisition of Electronic Arts (EA) by a consortium led by the PIF alongside Silver Lake and Affinity Partners. This historic all-cash deal and the largest sponsor-led take-private in history – underscores Saudi Arabia’s ambition to become a global force in digital entertainment. With PIF rolling over its existing stake, the deal reflects a deepening commitment to gaming and interactive media as part of the Kingdom’s outbound M&A strategy.
Saudi as Target: $0.78B Inbound M&A Marks Highest Since 2023
While outbound deals dominate headlines, inbound interest is quietly climbing. In Q3 2025, Saudi Arabia attracted US$0.78 billion in foreign-led M&A, its highest quarterly total since 2023. Though this represents just 0.18% of global deal value, the uptick signals growing confidence in the Kingdom’s regulatory reforms and market maturity. As foreign ownership caps ease, inbound M&A is expected to accelerate, adding depth to the Saudi Stock Reform & M&A Outlook. This growing inbound interest may also prompt domestic firms to enhance transparency and strategic alignment to attract long-term partners.
Outlook: Reform as a Catalyst for Strategic Innovation
The easing of foreign ownership restrictions is a strategic pivot that allows international investors to transition from passive stakeholders to active participants in Saudi corporate governance and long-term growth.
By enabling majority foreign stakes, Saudi Arabia is positioning itself as a global M&A hub. The Saudi Stock Reform & M&A Outlook is expected to foster innovation, improve governance, and deepen market sophistication, making the Kingdom a magnet for international dealmakers.
Also Read: Deal Velocity: Saudi Outbound M&A Hits $7.7B in H1 2025
