More Saudi fund managers now see the Saudi market as fairly valued, while views on the remainder of 2026 remain mixed as investors assess oil prices, regional developments, and sector opportunities.

Market Valuations Look Balanced

According to an SNB Capital survey of professional fund managers, 75% now view the Saudi market as fairly valued, the highest reading since Q2 2023. Meanwhile, only 11% believe valuations are currently unattractive, the lowest proportion since Q1 2024.

Managers were evenly split between positive and negative views for the remainder of 2026, with 35% bullish, 35% bearish, and 30% neutral.

Oil prices and regional developments remain the key factors shaping managers' outlooks for the rest of 2026. Most respondents expect crude prices to average between $80 and $94.9 per barrel during 2026, while many believe energy and petrochemical prices could normalize within six months after regional conflicts ease. Others expect the adjustment process to take more than a year.

Insurance and Technology Lead Sector Preferences

When asked about sector opportunities for Q2 2026, fund managers showed their strongest optimism toward:

• Insurance
• Technology
• Energy

Insurance emerged as the sector most likely to outperform through the end of 2026.

At the other end of the spectrum, managers expressed the weakest outlook for consumer goods and tourism-related businesses, while views on petrochemicals and telecoms remained broadly neutral.

Subscribe to The Value Anchor Topic / The Trend Catcher Topic — unlock the full historical archive and never miss a weekly pick again.

Cash Holdings Rise as Managers Stay Flexible

Portfolio positioning also points to a more cautious investment environment.

The percentage of managers holding more than 20% of assets in cash nearly doubled to 23%, compared with 12% in Q4 2025. Meanwhile, the share of managers with less than 5% cash exposure declined.

This suggests that many professional investors are preserving liquidity while waiting for greater clarity on market conditions.

Another notable shift was in investment style. Growth investing became the dominant strategy in Q2 2026, favored by 64% of respondents, replacing the value-oriented approach that had been more popular late last year.

Nomu Remains Attractive, but Liquidity Is Still a Concern

Interest in the Nomu Parallel Market remains relatively constructive.

Nearly two-thirds of surveyed managers said Nomu offers attractive opportunities, although many highlighted limited trading liquidity as a key challenge. Most respondents expect to keep their existing exposure unchanged, while a smaller group plans to increase allocations.

Software and technology companies continue to be the preferred areas of interest within the market.

Cement Sector: Neutral View on the Industry, Selective Opportunities in Leaders

While fund managers favor insurance and technology, analysts at AlJazira Capital (10 June 2026) maintained a Neutral stance on the Saudi cement sector.

The brokerage pointed to three near-term challenges:

• High inventory levels across the industry
• Intense pricing competition
• Margin pressure from higher input and fuel costs

However, it also argued that many of these risks are already reflected in current share prices. Longer term, the firm remains constructive on demand prospects, supported by Saudi Arabia's large pipeline of infrastructure, construction, and development projects.

After dispatch volumes reached a decade-high 54.9 million tons in 2025, AlJazira Capital expects volumes to normalize to around 53.2 million tons in 2026.

Preferred Cement Names

Among companies under coverage, the brokerage highlighted four stocks as its preferred ideas:

The brokerage's positive view is tied to factors such as operating efficiency, pricing strength, infrastructure exposure, and expected demand from energy and construction projects.

It particularly noted that Saudi Cement benefits from strong oil-and-gas-related demand, while Riyadh Cement and Yamama Cement are positioned to capture growth from major projects in Saudi Arabia's central region. AlJazira Capital also expects Yamama Cement's full transition to natural gas to support industry-leading margins over the coming years.

Maaden Draws More Constructive Analyst Views

Analysts also became more positive on Saudi Arabian Mining Co.(1211.SA) in early June.

Alawwal Capital: Buy Rating

In a report dated 8 June 2026, Alawwal Capital assigned a Buy rating and raised its target price to SAR 74.9, up from SAR 51.93 previously.

The firm forecasts Maaden's net profit to reach approximately SAR 6.98 billion in 2026 and SAR 10.2 billion in 2027. Its valuation assumptions remain relatively conservative, particularly regarding the company's share of Saudi Arabia's mineral resources.

SICO Bank: Upgrade to Neutral

A few days earlier, on 2 June 2026, SICO Bank upgraded Maaden to Neutral from Sell and increased its target price to SAR 65.

The bank cited Maaden's portfolio of mining assets, a supportive long-term outlook for gold, resilient aluminum pricing, and the possibility that the company could become effectively debt-free over the next 12 months after adjusting for projects still under development.

SICO forecasts net profit of SAR 10.71 billion in 2026 and SAR 9.83 billion in 2027, while noting that commodity prices, project execution, and acquisition activity could materially influence results.

Subscribe to The Value Anchor Topic / The Trend Catcher Topic — unlock the full historical archive and never miss a weekly pick again.