Saudi capital inflows to increase to $50 billion in 2019: IIF

Non-resident capital inflows in Saudi Arabia is expected to increase from $37 billion in 2018 to $50 billion in 2019 due to the projected sharp increase in portfolio investment, the Institute of International Finance (IIF) said in its latest report on Monday.

Also read: Saudi’s non-oil growth will accelerate to 3.3% in 2019: IIF

Resident capital outflows will continue to exceed non-resident inflows despite the modest narrowing of the current account surplus due to lower oil prices, IIF added.

Equity inflows are expected to make a significant contribution to portfolio flows as Saudi Arabia’s stock market was admitted into the FTSE on March 18, it noted in the report.

Noting that Saudi stocks will also be added to the MSCI EM Index in May, as the eight-largest constituent with 2.6 percent weight, IIF noted that these inclusions should boost confidence among investors and attract higher equity inflows, which it conservatively projects to be $12 billion.