CI Capital likes the Kingdom’s equity markets: Favor Saudi Arabia in the 2025 equity strategy, Egypt-based financial services firm CI Capital said in its latest MENA positioning report, seen by EnterpriseAM Saudi. The group cited the Kingdom's robust off-budget financial capacity, ongoing policy reforms, and strategic investment drive.

The rationale: Strong local demand fueled by the government’s localization push provides a buffer against external inflationary pressures. Hosting upcoming major global events and sports — including World Expo 2030 and FIFA World Cup 2034 — will also play to the same effect, while putting the investment bank’s estimate for non-oil GDP growth at 4.2% this year.

Saudi stocks made up six of the 20 top picks across the region, including Saudi National Bank (SNB), Al Mawarid Manpower Company, Arabian Contracting Services (Al Arabia), Maharah Human Resources, Tanmiah Food Company, and Sustained Infrastructure Holding (Sisco), all with an “overweight” rating.

CI CAPITAL’S TOP 3 PICKS

SNB boasts strong fundamentals underpinned by a liquid balance sheet, lower leverage, strong asset quality, and capitalization. This is in addition to a balanced exposure to corporate and retail segments, and high current and deposit accounts’ contributions.

Al Arabia is expected to maintain its current position as the holder of the biggest market share in advertising, with that expected to reach 85% this year. Rising activity in the local real estate, culture, and sports sectors presents a strong business opportunity to the company. Long term contracts and the potential for landing contracts with more airports also support the narrative.

Infrastructure and logistics investment firm Sisco Holding’s (Sisco) stock price is expected to trade at a lower price relative to its growth potential this year, offering a buying opportunity to investors. Strong performance of its subsidiaries, including warehousing arm Logipoint and RSGT, and a recent cross-border expansion into Bangladesh, is among the factors.

ALSO FROM THE REPORT-

  • Our deficit is projected to widen in 2025 due to extended production cuts weighing on oil prices;
  • Corporate lending to rise 10.7% on the back of lower interest rates;
  • Unemployment rate to reach target at 5% this year.
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