Saudi Arabia’s stock market surged — adding $124 billion to its market capitalization — after Bloomberg reported that the kingdom may soon ease foreign ownership limits for listed companies.

The Tadawul All Share Index jumped 5.1% on Wednesday, the most in more than five years, after a board member of the Capital Market Authority said majority foreign ownership could come into effect by the end of the year.

Saudi bank stocks surged by a record 9.2% while JPMorgan Chase & Co., EFG Hermes and Franklin Templeton predicted billions in potential inflows to the market, which has missed this year’s emerging-market rally due to a drop in oil prices.

Investors are betting on a flood of investment to the Gulf nation if it eases rules that now cap foreign ownership of listed companies at 49%. The

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