Debt + money market funds draw inflows as Saudi main-market listings stall

Saudi capital is moving toward fixed income and cash, and the main-market listing pipeline thinned alongside it. The Capital Market Authority approved no main-market offerings in 2Q, against three in 1Q, and cleared three Nomu listings, according to its latest quarterly bulletin (pdf). Another 31 requests are under review, 17 for the main market and 14 for Nomu, down from 51 a year earlier.

Where the money went instead: Net fund subscriptions totaled SAR 13 bn in 1H 2026, down 60% from SAR 32.7 bn a year earlier. Debt funds led the inflows at SAR 5.2 bn, with money market and multi-asset funds also taking in money, while equity funds saw SAR 0.8 bn of net outflows. Debt funds are the fastest-growing category at 58.6% y-o-y, and money market funds are now the largest at SAR 87.4 bn, ahead of equity funds at SAR 43.7 bn. Total public fund assets rose 19% y-o-y to SAR 245.5 bn across 371 instruments.

REMEMBER- The CMA is proposing rules to improve pricing and strengthen underwriting. Bookbuilding orders would have to be backed by existing liquidity, with advisers and participating institutions verifying investors’ financial capacity, and underwriting agreements would take effect before bookbuilding begins, leaving underwriters to buy any unsubscribed shares.

February’s opening hasn’t shifted the ownership mix: International investors held 4.72% of the main market, worth SAR 445.2 bn, in 2Q, against 4.69% in 1Q and 4.51% a year earlier. They bought SAR 124.8 bn and sold SAR 120 bn over the quarter. Government entities remain the largest holders at 65.1%, or SAR 6.15 tn, followed by companies at 16.7%.

The growth is happening off the main market: Private fund assets rose 31.4% y-o-y to SAR 755.7 bn, with real estate funds holding 56% of that, and the number of private funds climbed past 1.87k from 1.78k, though subscribers fell 5.6% q-o-q to 181k. Assets under custody jumped 47.1% y-o-y to SAR 4.17 tn across 68 institutions, and value traded through Saudi market institutions in foreign markets rose 18% q-o-q to SAR 312.1 bn.

Saudi equity funds stay home: 87% of their assets, SAR 38.1 bn, sit in Saudi stocks, with SAR 3.28 bn in GCC equities and SAR 21.2 mn in US markets.

On the debt side: The government issued SAR 29.9 bn in 2Q and redeemed SAR 10.5 bn, while corporate debt offerings fell 34.1% y-o-y to SAR 8.08 bn. Unlisted corporate debt outstanding rose 5.9% q-o-q to SAR 121.7 bn, with listed corporate debt at SAR 19.2 bn across 10 issuers.

The intermediaries are doing well out of it: Market institution revenues rose 9.1% y-o-y to SAR 5.15 bn in 2Q, led by investments at SAR 1.79 bn and asset management at SAR 1.76 bn, with dealing and brokerage at SAR 657.1 mn.