Imagine for a moment that you own a small store in your neighborhood. One day, instead of your usual customers, luxury cars stopped in front of your store's door and out came major traders of the world, asking to buy a stake in your store for millions. You would not sell them immediately, but you would stand and ask yourself: "What did they see in my store that I did not see?".

This dramatic scene is not from a movie, but is exactly what is happening today on the screens of "Tadawul" in the Saudi stock market; the world is sending its billions to enter into partnership with us. So what is the story?

"Smart Money" Knows No Flattery

In the world of economics and money, there is a famous term known as "Smart Money". And what is meant is those huge sums of money managed by global investment funds and major banks. This money knows no flattery, does not move emotionally, and does not throw a single dollar into land that does not promise a bountiful harvest.

When we read in the news that foreign investors are pouring billions of riyals in a single week to buy shares in hundreds of Saudi companies, this simply means that "smart money" has studied the maps of the world, measured the risks, searched for safety, and then placed its finger on the city of Riyadh saying: "Here we place our money".

Why Saudi Arabia? And Why Now?

If we opened the pages of prestigious magazines, we would find that the answer is summed up in fundamental reasons that push these foreigners to pour their money to us:

  • The compass of clear vision: The foreign investor hates "fog". He is looking for a country that knows its destination well. And with Saudi Arabia's Vision 2030, the world sees a massive economic transformation plan, and giant projects being realized on the ground, which gives him the assurance that the economy is growing and not declining.
  • Safe haven in a troubled world: The world today is going through economic crises, inflation, and political tensions in the East and West. In the midst of this turbulent sea, the Saudi market appears as a stable and safe island, its economy is solid, its currency is stable, and its laws protect the rights of investors.
  • Search for growth: Markets in Europe, America, and slow maturity, but the Saudi market is still a young, promising market expanding rapidly in new sectors such as technology, tourism, and renewable energy.

What does this mean?

You might ask: "I am not a trader and do not own stocks, what do I benefit from foreign entry into the market?".

The answer is simply that the stock market is the "Beating Heart" of the country's economy. When billions of foreign money enters to buy shares in a local company, that company becomes stronger, expands its business, builds new factories, and opens more branches.

This expansion creates thousands of new jobs for our sons and daughters, moves the wheel of buying and selling in markets, and improves the quality of services provided. In other words; every billion foreigner enters the stock market, is like "fuel" added to the engine of development that serves us all in the end.

In the end, the entry of foreigners into the Saudi stock market is not just green numbers dancing on trading screens. It is at its core "a certificate of global confidence"; that the Saudi house from the inside is strong, that its foundations are solid, and that the future we are planning for today, the whole world wants to be part of it tomorrow.