Morgan Stanley: The window for reforming holdings in the Saudi stock market is narrowing.

Morgan Stanley stated that with the appointment of the new chairman of the Saudi Capital Market Authority, the proposed reform to relax the foreign ownership limit has once again become a focus of the market. Strategist Matthew Yuan pointed out in a report released on Monday that the window for implementing the reform of the foreign ownership limit is continually narrowing this year. In order for MSCI to incorporate the impact of the foreign ownership limit adjustments in the November index review, the relevant policies must take effect before the corresponding pricing deadline, which could fall on any day during the last ten trading days of October. "Even if the policy takes effect as scheduled, the index provider may still delay or implement the adjustments in phases." The bank estimated that if the foreign ownership limit is partially relaxed to 75%, the Saudi stock market would see an influx of $4.3 billion in passive funds; if the limit is completely removed, it would attract $7.4 billion in passive funds.