Saudi Market Today: Comprehensive Analysis of Stocks and Sectors in 2025

The Saudi financial market (Tadawul) is the official stock exchange of the Kingdom, established in 2007 as a closed joint-stock company under the supervision of the Saudi Capital Market Authority. The authority oversees the regulation and management of the market and applies the highest standards of transparency and governance, aiming to protect investors and ensure transaction safety. Tadawul includes more than 200 listed companies by the end of 2024, distributed across multiple economic sectors such as energy, banking, petrochemicals, real estate, consumer goods, and telecommunications. The market plays a pivotal role in financing national projects and supporting the goals of Vision 2030, reflecting the development of the national economy and its attractiveness to investors both domestically and internationally. Tadawul has undergone regulatory reforms that attracted foreign capital, such as joining emerging market indices and gradually raising foreign ownership limits, enhancing the Saudi market's position among global exchanges.

The TASI index is the main index that measures the performance of all companies listed in the main Saudi market. The index is based on the market capitalization weighted by the shares of companies, making it the most important index for analysts and investors in measuring overall market trends. In 2024 and early 2025, the TASI index experienced noticeable fluctuations influenced by a range of factors such as oil prices, global economic news, and monetary policies. For instance, the index fell to around 11,230 points by the end of September 2025, representing a decline of approximately 9.6% since the beginning of the year. This decline is attributed to selling pressures due to falling energy prices and some profit-taking after strong upward trends witnessed in the market during the first half of the year. Tracking the TASI movement is essential for all participants to understand the general mood of the Saudi market and assess short- and medium-term expectations.

By the end of 2024, the combined market capitalization of all companies listed on Tadawul exceeded several trillion Saudi riyals, driven by the weight of companies like Saudi Aramco in the energy sector. The average daily trading value in the Saudi market is several billion riyals, reflecting high liquidity and active trading. Local investors make up the largest share of trading volume, but foreign capital inflows have been rising, especially after the market's inclusion in global indices and allowing increased foreign ownership percentages. Trading volumes and transactions vary by sectors and influential news such as corporate results, regulatory movements, or changes in oil prices. Investors pay significant attention to this data as it serves as an indicator of the depth and maturity of the Saudi market today.

The Saudi market today is characterized by the diversity of its sectors, but some sectors remain more influential on the overall index and trading volumes, such as the energy sector (particularly Aramco), which dominates the largest part of market capitalization. Following that is the banking sector, which includes banks such as Al Rajhi Bank, National Commercial Bank, and Alinma Bank. The petrochemical sector is also prominent, including companies like SABIC, while the telecommunications sector plays a pivotal role with companies like STC, Mobily, and Zain. There are also consumer goods (Almarai, Savola) and real estate (Dar Al Arkan, Amiantit) sectors, as well as smaller sectors like insurance and technology. The performance of these sectors directly affects the movement of the overall index, as any fluctuation in the shares of leading companies leads to noticeable changes in the index. Sector classifications are regularly updated to reflect economic transformations and new investment trends within the Kingdom's future vision.

Leading companies play a pivotal role in directing the movement of the Saudi market today. Saudi Aramco, the largest listed company by market capitalization, emerges as a key driver of the overall index due to its profits and share prices being influenced by global oil price trends. Alongside it, companies like SABIC in petrochemicals, Al Rajhi Bank in the banking sector, and Saudi Telecom in the telecommunications sector stand out. Some of these companies have seen declines in their market value during 2025 due to falling oil prices and fluctuations in domestic and global demand. Conversely, other companies have benefited from strong economic performance or positive announcements that enhanced their competitive position. It is important for observers to recognize that the performance of these leading companies quickly reflects on sector indices and the overall index, as well as affecting the sentiment of both retail and institutional investors.

The Saudi market today has witnessed one of the most significant regulatory transformations in its history, with official reports allowing foreign ownership in listed companies to rise to 100% (up from the previous limit of 49%). The issuance of these reports led to strong jumps in the overall index, with the market recording its largest daily increase in September 2025 in five years, fueled by optimism about attracting new foreign investments that could exceed $10 billion according to Bloomberg estimates. This openness has enhanced Tadawul's position in global indices, making the Saudi market today more attractive to international investment funds and major institutions seeking opportunities in emerging markets. Additionally, raising foreign ownership limits may contribute to increased trading volumes, diversifying the investor base, and supporting the market valuations of major companies.

The quarterly financial results of companies reflect the performance of various sectors and their sensitivity to economic conditions and global commodity prices. During 2024 and 2025, companies like Aramco announced strong results in some periods, but their profits declined in others due to falling oil prices. The Saudi Exchange Group also reported a 41.3% decline in its quarterly profits in the second quarter of 2025 compared to the previous year due to a drop in trading revenues. Company results directly affect stock prices, as positive results may drive investors to increase demand for profitable companies' shares, while negative results lead to selling pressures and price declines. Investors pay special attention to earnings announcements and management forecasts for upcoming periods, as this data forms the basis for analyzing future performance and estimating potential risks in the Saudi market today.

The Saudi market today remains highly sensitive to changes in global oil prices, as Saudi Arabia is the largest oil exporter in the world, and most companies in the index are directly or indirectly linked to this sector. When oil prices rise, the profits of energy and petrochemical companies increase, positively reflecting on the overall index. Conversely, falling prices lead to a decline in these companies' profits, putting pressure on the market, as occurred in 2025 with TASI dropping by 9.6% since the beginning of the year. In addition to oil, interest rates play a significant role, as the Saudi central bank often aligns its policies with those of the US Federal Reserve. A rate cut in September 2025 led to a temporary rise in the market due to improved financing costs and increased liquidity. Investors should monitor these global influences, as they determine the general mood and dictate the trends of local and foreign capital.

In addition to the stock market, the sukuk and bond market in Saudi Arabia has expanded significantly in 2024 and 2025, with the Kingdom issuing international bonds worth $14.4 billion by mid-2025. These issuances aim to finance development projects under Vision 2030 and diversify sources of public budget financing. This sector represents an important area for investors seeking fixed returns and diversifying their investment portfolios away from stock volatility. The success of government issuances reflects market confidence in the Kingdom's credit rating and financial stability. It is important to monitor the impact of these issuances on local liquidity and interest rates, as they can compete with the banking sector for financing and affect borrowing costs for companies and individuals.

Some sectors in the Saudi market today are characterized by intense competition, such as the telecommunications sector, where companies like STC, Mobily, and Zain compete, or the banking sector, where Al Rajhi Bank, National Commercial Bank, and Alinma Bank have close market shares. Conversely, there are semi-monopolistic sectors such as energy due to Aramco's dominance, or petrochemicals with SABIC's control. Competition is also evident in the consumer goods sector (Almarai, Savola, Nadec) and real estate (Dar Al Arkan, REITs). Government policies and the Public Investment Fund are pushing private companies to enhance efficiency and innovation to maintain competitiveness. The entry of foreign capital and the evolution of regulatory laws further enhance market dynamics and compel companies to adapt to global standards in governance and disclosure.

The Saudi market has witnessed numerous regulatory transformations over the past two years, most notably easing foreign ownership restrictions, issuing new laws to enhance transparency and disclosure, and developing environmental and social governance standards. Among the notable decisions is allowing foreigners to invest in companies that own properties in Mecca and Medina, opening new horizons for investment flows. Tadawul has also introduced updates to sector classifications and launched new financial products such as specialized exchange-traded funds. All these transformations aim to attract more foreign investments, increase market depth, and achieve the goals of Vision 2030 in diversifying the economy. Investors are keen to follow these regulatory updates as they directly impact company valuations, investment criteria, and capital movements.

Despite positive developments, the Saudi market today faces several risks and challenges that could affect its performance. The most prominent of these are sharp fluctuations in oil prices, which directly impact the profits of major companies and the overall index. There are also liquidity risks, as the market, despite its increasing depth, remains less liquid than some global markets, which may lead to price volatility when large trading orders are present. Additionally, the market remains susceptible to the effects of global interest rate policies, regional geopolitical conditions, and sudden changes in regulations or taxes. The reliance on a limited number of giant companies makes the index sensitive to any negative developments affecting these companies. Therefore, it is essential for investors to be aware of these risks and to diversify their investment portfolios to protect capital from unexpected fluctuations.

The Saudi market today plays a crucial role in implementing the Kingdom's Vision 2030, which aims to diversify national income sources and reduce dependence on oil. By developing an advanced financial market attractive to investments, the Kingdom seeks to enhance the role of the private sector, finance startups, and attract foreign capital. The market has witnessed a series of reforms such as the privatization of some government companies, the development of new financial products, and raising standards of transparency and corporate governance. The listing of giant companies like Aramco has also contributed to deepening the market and increasing its attractiveness to international investors. The market is expected to continue playing a role in financing infrastructure projects, renewable energy, and technology, making it a pivotal element in the comprehensive economic transformation underway in the Kingdom.