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Saudi Arabia: Investors' survey results

  • We noticed an interesting shift in participants’ views

  • Both investors have increased their investment in the Saudi market since Q4 20

  • Around 70% of fund managers expect the economy to fully recover in 2022

Iyad Khalid Ghulam
Iyad Khalid Ghulam

Head of Equity Research

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Contributors
Walid Khalid Bamhair
Nauman Khan
SNB Capital
28 January 2021
Published bySNB Capital

We have conducted two surveys in Q1 21, the Fund Managers’ Survey and the Retail Survey. The Fund Managers’ Survey was sent to local and international fund managers. The survey focuses on Saudi and aims to collect data regarding the Fund Managers’ views on the Saudi economic and equity market outlook. The survey also considers asset allocation trends of portfolio managers.

On the other hand, The Retail Survey summarizes the results of a questionnaire sent to an anonymous sample of retail investors. The survey sample consists of active investors with various portfolio sizes. The aim of the survey is to understand the retail investors’ views and behaviors regarding the Saudi stock market. Investors’ expectations and investment strategy were also addressed in the survey.

Key Highlights from the surveys

Market Outlook: We noticed an interesting shift in participants’ views. fund managers are shifting from bearish views in Q4 20 (50%) to Neutral (67%) in Q1 21. Meanwhile, retail investors are becoming more cautious as the percentage of bullish retail investors declined from 62% in Q4 20 to 50% in Q4 20.

Cash levels: Both investors have increased their investment in the Saudi market since Q4 20. Fund Managers with a cash level of (0%-5%) increased from 21% in Q4 20 to 41% in Q1 21. During the same period, retail investors with 100% investment in the market increased from 14% to 31%.

Gradual shift to other asset class: Although equities remain the favorable asset class for retail investors, Q1 21 survey showed a gradual move to real-estate and private businesses.

Full recovery in 2022: Around 70% of fund managers expect the economy to fully recover in 2022 while 26% expected a full recovery in H2 21. Moreover, 70% of the participants are expecting a GDP growth of 3.2% in 2021.