Saudi Arabia may relax foreign ownership limits, with Morgan Stanley predicting over $100 billion in capital inflows.

The Saudi benchmark stock index surged 5% on Wednesday, following reports that the country may soon allow foreign investors to hold majority stakes in listed companies. All industry sectors saw gains, with Saudi bank stocks hitting a record single-day increase of 9%. Saudi Arabia is expected to raise the limit on foreign ownership before the end of the year in an effort to revitalize the underperforming stock market and attract more overseas funds to support Crown Prince Mohammed bin Salman's economic diversification plans. JPMorgan Chase predicts that if the Saudi Capital Market Authority raises the foreign ownership limit from the current 49% to 100%, it could bring in $10.6 billion of inflows.