Saudi public funds increase investment in US and European stocks by 79.5%

Public investment funds in Saudi Arabia increased their assets in the US and European stock markets, at the end of the second quarter of 2021, by 79.5% on an annual basis.

The total assets of public funds invested in the US and European stock markets amounted to approximately 2.33 billion riyals at the end of the second quarter of this year 2021, while the fund assets during the same period l last year amounted to approximately 1.29 billion riyals. , a difference of 1.03 billion riyals.

Thus, their assets on the American and European markets recorded their highest level in five years, more precisely since mid-2016, coinciding with the recording of record levels especially for the American markets, according to the newspaper Al-Eqtisadiah.

These assets grew for the fifth consecutive quarter, growing 18.3% compared to the first quarter of the same year, when assets then stood at around 1.97 billion riyals.

In detail, public funds and invested assets in the US market amounted to approximately 1.54 billion riyals (equivalent to 66% of both markets) at the end of the second quarter of 2021, registering growth of approximately 85 % for the same period of last year, a difference of about 705 million riyals.

Its assets in the European stock market also increased by 70% on an annual basis, reaching about 791 million riyals, compared to 465 million riyals for the same period, a difference of about 326 million riyals.

According to the analysis, investments of public funds in European and American equities were equivalent to around 33% of the volume of assets of funds invested in equities in foreign markets at the end of the second quarter of 2021, when it was around 28% for the corresponding period 2020.

Thus, the volume of holdings of public funds invested in foreign markets amounted to about seven billion rials, compared to about 4.66 billion rials for the same period of the previous year, an increase of 50%.

Investments of public funds in Gulf equities come second after Americans and Europeans, constituting around 27.8% of the volume of foreign assets.

The number of public funds invested in the US and European markets is around seven, out of 54 funds approved by the Capital Market Authority that invest their assets in foreign markets.

The number of subscribers reached 912, up from 541 during the same period last year.