Saudi Market Index Today: Comprehensive Performance Analysis

The Saudi Market Index Today (TASI) is the main index that measures the performance of all listed stocks in the Saudi financial market (Tadawul). The index is calculated based on the free float market capitalization, meaning that each company's weight in the index corresponds to the shares available for public trading, not the total market capitalization. The index was established in 1986, with a base value set at 100 points, while it recorded approximately 10,600 points by the end of 2024.

The importance of the Saudi Market Index Today lies in being a primary reference for local and foreign investors, economic decision-makers, and financial institutions, as it provides an accurate picture of the changes occurring in the market moment by moment. The index reflects the overall financial and operational performance of listed companies and is influenced by local and global economic factors. It is also used as a benchmark for investment funds and financial portfolios to assess their performance against the market as a whole.

The index data is updated in real-time during trading sessions by official trading platforms, allowing for precise monitoring of any sudden movements or significant investment decisions. The importance of the index increases with regulatory and economic developments in the Kingdom, especially with the implementation of Vision 2030 and the diversification of the national economy.

The Saudi Market Index Today (TASI) relies on a calculation methodology based solely on the market capitalization of free-floating shares (i.e., shares available for trading by the general public), making it more reflective of the true market movement. The index is updated instantaneously during trading sessions, so any changes in stock prices are directly reflected in the overall index.

The index is calculated using the following formula:

TASI Index = (Current Free Float Market Capitalization / Free Float Market Capitalization in the Base Year) × 100

This methodology allows for highlighting the impact of large companies with high free float trading (such as Aramco and Al Rajhi), while minimizing the effect of restricted shares or those owned by the government that are not freely traded.

Specialized sub-indices (such as Nomu for small and medium enterprises and sectoral indices for basic materials, banks, telecommunications, etc.) have been added to provide a more accurate picture of the performance of each sector individually. This allows investors and institutions to analyze the performance of sectors and companies separately and measure their contribution to the overall index.

From a technical perspective, the index also provides analytical tools such as moving averages, support and resistance levels, and trading volumes associated with index movements, helping to assess market liquidity and momentum.

The Saudi Market Index Today (TASI) includes the largest listed companies by market capitalization, and the financial indicators of these companies play a pivotal role in the fluctuations of the overall index. Among the most influential financial indicators are: stock price, market capitalization, price-to-earnings ratio (P/E), annual dividend yield, and revenue growth rate.

For example, Saudi Aramco alone accounts for about 75% of the total market capitalization, with a market value of approximately 9.9 trillion riyals by the end of 2024. The stock price of Aramco is around 38 riyals, with a P/E ratio of 22 and a dividend yield of 4.2% annually. Meanwhile, Al Rajhi Bank has a stock price of 130 riyals, a market capitalization of 130 billion riyals, a P/E ratio of 16, and a dividend yield of 4.5%.

The importance of financial indicators increases during earnings announcement seasons, as the results of major companies directly affect the overall index. An increase in Aramco's or banks' profits often lifts the index, while results below expectations lead to selling pressures. Additionally, revenue growth or cash distributions serve as a key incentive for liquidity movement within the market.

These financial indicators demonstrate the ability of companies to provide sustainable returns to shareholders and determine the attractiveness of the market for local and international investors. They assist in evaluating risks and growth opportunities across various sectors listed in the index.

The Saudi Market Index Today experienced relative stability during 2024 and 2025, with some fluctuations linked to global and local factors. The index closed at approximately 10,595 points by the end of 2024, achieving a slight annual increase of 0.6%. The index fluctuated between 10,000 and 11,000 points for most of 2025, reaching around 10,430 points in September 2025.

The overall index was influenced by several factors, including rising oil prices in the first half of 2024 (where Brent exceeded $90 per barrel), as well as the results of leading companies like Aramco and major banks that recorded record profits, boosting investor confidence and raising daily liquidity to an average of 6 billion riyals.

Conversely, the market experienced some periods of decline due to geopolitical tensions (such as regional conflicts) or when oil prices dropped to the range of $70-75 at the end of 2024. Additionally, U.S. interest rate policies affected capital movements, as the interest rate cut in December 2024 stimulated Gulf markets, including Saudi Arabia.

Overall, the index's performance reflected economic stability supported by Vision 2030 and ongoing regulatory reforms that enhanced the market's attractiveness to local and foreign investors.

The Saudi Market Index Today comprises diverse economic sectors, but four main sectors dominate the index: energy and petrochemicals, banking and finance, basic materials and mining, and telecommunications.

1. Energy and Petrochemicals Sector: Led by Aramco and SABIC. This sector is directly affected by global oil prices, as rising oil prices increase company profits and thus lift the index, while falling prices lead to selling pressures. In 2024, the sector benefited from rising oil prices, positively reflecting on the index.

2. Banking and Financial Sector: Includes major banks like Al Rajhi, National, and Samba. This sector plays a crucial role in providing liquidity for domestic investment and benefits from government programs for real estate and commercial financing. In 2024, the sector grew by 2-15%, contributing to the stability of the index.

3. Basic Materials and Mining: Includes companies like Ma'aden and SABIC. The sector is affected by global commodity prices (gold, copper, petrochemical products) and achieves varying profits depending on global price fluctuations.

4. Telecommunications: Represented by STC and other companies. A mature sector that achieves stable annual growth of 3-5%, supported by the expansion of 5G services.

These four sectors form the backbone of the index, and any significant movement in their stocks leads to a noticeable change in the overall index value.

Leading companies with large market weights play a pivotal role in determining the direction of the Saudi Market Index Today. Among these prominent companies are Saudi Aramco, Al Rajhi Bank, National Commercial Bank, SABIC, and Saudi Telecom Company.

Saudi Aramco, with a weight of approximately 75% of the market capitalization, directly impacts the index. Any change in its stock price due to earnings announcements or oil price movements is immediately reflected in the overall index. For example, Aramco's announcement of record profits in the third quarter of 2024 clearly pushed the index upward.

Major banks, such as Al Rajhi and National, also serve as essential pillars of the index, as their quarterly results and cash distribution levels influence investor confidence and market liquidity.

SABIC (petrochemicals) and STC (telecommunications) are medium-weight companies that significantly impact the index when financial results or strategic expansions are announced.

These companies reflect the overall trend of the index and determine the market's attractiveness to local and international investors. Therefore, it is advisable to continuously monitor news and results from these companies to understand the movements of the overall index.

Liquidity and trading volume are fundamental indicators that measure the vitality of the market and investor interest in the Saudi Market Index Today. In 2024, the average daily trading value reached approximately 6 billion Saudi riyals, with record trading volumes recorded during certain sessions coinciding with positive news such as rising oil prices or announcements of major companies' profits.

Liquidity varies significantly from day to day depending on local and global economic conditions. For example, daily trading volume exceeded 12 billion riyals in August 2024 with the release of strong quarterly results and rising oil prices, while it dropped to below 3 billion riyals during periods of pessimism or geopolitical fluctuations.

High liquidity reflects investor confidence and their ability to enter and exit the market easily, thereby supporting the index's stability and reducing sharp price fluctuations. Conversely, low liquidity may increase the likelihood of sudden volatility and weaken the market's response to positive or negative news.

Liquidity plays a crucial role in attracting foreign investments, as it encourages investors to enter a market that offers the ability to liquidate assets quickly without significantly impacting prices.

The Saudi market witnessed several significant regulatory developments in 2024-2025, the most notable of which was the easing of restrictions on foreign ownership. In September 2025, the Capital Market Authority announced its intention to raise the foreign ownership limit in listed companies from 49% to 100%. This announcement led to a rise in the overall index by more than 5.1% in a single session, marking its highest level in five years.

The Capital Market Authority also launched several initiatives to facilitate listing procedures, update financial regulations, and expand reliance on financial technology (FinTech), which contributed to enhancing market efficiency and increasing transparency. These updates also included the development of settlement and clearing mechanisms to accommodate larger trading volumes.

These developments directly impacted the index, attracting new foreign liquidity and raising confidence levels in the Saudi market. They also supported the strategic direction of Vision 2030 in making the Saudi financial market a regional and global hub for attracting investments.

Regulatory updates have contributed to reducing market volatility, increasing the depth of the financial market, and encouraging more local and international companies to list on Tadawul.

The Saudi Market Index Today is influenced by a range of global factors, the most prominent of which are oil prices, global central bank policies, and geopolitical fluctuations.

1. Oil Prices: Oil is the backbone of the Saudi economy, and any change in its prices directly reflects on the profits of leading companies (Aramco and SABIC) and thus on the overall index. The rise of oil above $90 in 2024 supported the market, while its decline to levels of $70-75 led to selling pressures.

2. Global Interest Rate Policies: The Saudi market is affected by the policies of the U.S. Federal Reserve, as raising or lowering interest rates changes capital flow trends between global markets. The interest rate cut in December 2024 drove Gulf markets, including the Saudi market, upward.

3. Geopolitical Tensions: Regional conflicts (such as Middle Eastern crises) affect investor confidence, leading to either a temporary exit of liquidity or an increased demand for safe assets. Some sessions in 2024 saw the index decline due to these tensions.

4. Global Economic Growth: A slowdown or growth in the global economy affects the demand for oil and Saudi products, which reflects on the profits of major companies and impacts the overall index.

In addition to the general index (TASI), the Saudi market includes important sub-indices such as the Parallel Market Index (Nomu) and specialized sectoral indices (banks, basic materials, telecommunications, etc.).

The Nomu Index focuses on small and medium enterprises with high growth, and it is subject to less stringent listing criteria than the main market. In 2024, the Nomu Index recorded a rise of about 3%, supported by the listing of new startup companies and increased demand for innovation and technology stocks.

Sectoral indices play an important role in measuring the performance of each sector separately, allowing investors to identify the most growing or declining sectors. For example, the basic materials index rose by 4% in 2024, while the finance index achieved modest growth between 1-2%.

These sub-indices influence overall market confidence and help diversify investments, reducing risks associated with a single sector. They also provide opportunities for investors seeking rapid growth or diversifying their financial portfolios.

The Saudi market is the largest in the Middle East in terms of market capitalization and liquidity. The Saudi Market Index Today competes with indices from Dubai (DFM), Abu Dhabi (ADX), Doha (DSM), and Kuwait for attracting Gulf and foreign capital.

The Saudi stock exchange is characterized by high levels of liquidity and regulatory transparency, in addition to the weight of leading companies (such as Aramco), making it an attractive center for global investors seeking investment opportunities in emerging markets.

Globally, TASI's performance is compared to emerging market indices such as MSCI Middle East, as well as markets in India, Brazil, and Turkey. The Saudi market enjoys the advantage of currency stability (the riyal is pegged to the dollar), the strength of vital sectors, and ambitious economic reform programs (Vision 2030).

Data shows that the Saudi market has managed to maintain its attractiveness despite regional and global fluctuations, thanks to regulatory reforms and increased openness to foreign investment. Its leading role in the region is expected to continue with the listing of more companies and the expansion of financial products.

The Saudi market witnessed numerous events in 2024-2025 that directly impacted the Saudi Market Index Today. Among the most notable events are:

1. Announcement of easing restrictions on foreign ownership in September 2025, leading to a 5.1% rise in the index in a single session.
2. Fluctuations in global oil prices between $70 and $90 per barrel and their impact on the profits of leading companies.
3. Announcements of record quarterly profits by major companies (Aramco, Al Rajhi, SABIC) in 2024, increasing investor confidence and raising liquidity.
4. Geopolitical tensions in the region, particularly regional conflicts that led to declines in the index during some sessions.
5. U.S. Federal Reserve policies regarding interest rates, which had a direct impact on capital flows.
6. Regulatory updates and the introduction of new financial products, such as composite indices and the expansion of investment tools in the market.

These events reflect the interconnection of local and global factors in directing index movements and highlight the importance of following economic news and analyses to understand market trends accurately.

Vision 2030 is a cornerstone in the development of the Saudi financial market, aiming to diversify the economy, reduce dependence on oil, and enhance the Kingdom's position as a regional and global financial hub. The vision supports the listing of new sectors in the market, such as tourism, entertainment, renewable energy, and technology.

Vision 2030 has contributed to launching capital market development programs, facilitating listing procedures, and encouraging local and international companies to list part of their shares in the Saudi market. It has also promoted the establishment of specialized investment funds and expanded the range of financial products available to investors.

This has led to increased market depth, enhanced transparency, and attracted new foreign and local investments. Additionally, massive infrastructure projects (such as NEOM) have increased demand for construction and energy stocks.

Thanks to Vision 2030, the Saudi financial market is expected to witness sustainable growth and an increase in the number of listed companies, further enhancing the role of the overall index as a key measure of national economic performance.

Despite the high attractiveness of the Saudi Market Index Today, investing in it involves several risks that must be managed wisely. Among the most prominent risks are:

1. Oil Price Volatility: Any sudden drop in oil prices leads to a decline in the profits of leading companies and puts pressure on the index.
2. Global Market Volatility: U.S. interest rate hikes or any global economic crises affect capital flows and may lead to sharp corrections.
3. Geopolitical Risks: Regional conflicts or political tensions may drive investors towards safe assets and negatively impact the index.
4. Sector-Specific Risks: Some sectors may face intense competition or declining demand, affecting the profitability of listed companies.
5. Liquidity: During certain periods, liquidity may decrease significantly, increasing price volatility and making it difficult to exit investment positions.

The Capital Market Authority works to mitigate these risks by increasing transparency, diversifying financial products, and encouraging institutional investments. However, investors should always consult a licensed financial advisor before making investment decisions to ensure effective risk management.