The Saudi financial market, known as "Tadawul," is one of the most prominent exchanges in the Middle East and North Africa, representing the main financial artery of the growing Saudi economy. Since its official establishment in 2007, Tadawul has evolved into the largest financial market in the region in terms of market capitalization and the number of listed companies, in addition to the diversity of available financial instruments. Tadawul combines the main market, which includes major companies, and the parallel market (NOMU) dedicated to small and medium enterprises, with specialized markets for bonds, sukuk, and derivatives.
The Saudi financial market plays a pivotal role in attracting local and foreign investments, especially after the economic and administrative reforms associated with Vision 2030, which included regulatory updates, the listing of giant government companies, and a gradual increase in foreign ownership percentages. Recent data indicate stable liquidity levels and rising trading volumes, with ongoing listings of indices such as TASI and MT30, reflecting the market's vitality and the diversity of its economic sectors.
The importance of Tadawul extends beyond being a platform for stock trading; it serves as a true mirror of the Saudi economy, with a clear connection between financial market performance and the activity of vital sectors such as construction, energy, industry, and financial services. The performance of companies, such as Hail Cement in the building materials sector, reflects the market's dynamism and its ability to adapt to local and global economic changes. In this comprehensive guide, we review the key features of the Saudi market trading, major financial indicators, sector and company performance, and the factors influencing market movement, with a focus on recent examples and data from 2024 and 2025.
History and Evolution of the Saudi Financial Market (Tadawul)
The Saudi financial market has witnessed significant developments since its inception in the mid-20th century, beginning as a simple and informal mechanism for trading shares of a limited number of companies before evolving into a regulated entity. In 2007, "Tadawul" was established as an official institution under the supervision of the Saudi Capital Market Authority, as part of the Kingdom's efforts to regulate the finance and investment sector, enhance transparency, and ensure financial discipline.
Prior to this, trading was conducted in relatively primitive ways, with a lack of precise regulatory rules, making the market susceptible to sharp fluctuations and instability. With the establishment of Tadawul, advanced electronic trading systems were implemented, central clearing systems were introduced, and the technological infrastructure was expanded to meet international standards. Over the past two decades, the market has undergone substantial reforms, including updating regulations, enhancing governance, and launching new financial instruments such as sukuk, bonds, and derivatives, providing investors with more diverse options.
The growth of Tadawul has been linked to the development of the Saudi economy, especially during oil booms, as the market benefited from the influx of local and global liquidity. The listing of major companies such as Saudi Aramco and SABIC has raised the market capitalization of the general index and attracted the attention of global investors. In recent years, the reforms of Vision 2030 have had a significant impact on enhancing market efficiency and increasing its openness, gradually allowing foreigners to own larger stakes in listed companies.
Today, Tadawul includes over 200 companies in the main market and hundreds of companies in the parallel market, providing an advanced electronic platform that allows for instant trading, real-time disclosures, and access to financial and analytical information with complete transparency. These historical developments have made Tadawul a cornerstone of the Saudi economy and one of the most important financial markets in the region.
Market Structure: Main Market, NOMU, and Sukuk and Derivatives Markets
The Saudi financial market is divided into several main sections, designed to meet the needs of various investor segments and companies. At the forefront of these sections is the "main market," which is the primary destination for listing large companies with substantial capital and wide economic activity, such as energy, petrochemicals, banks, and telecommunications companies. The main market includes over 200 listed companies, with sectors ranging from industry, services, basic materials, healthcare, and more, reflecting the diversity of the national economy.
In addition to the main market, the "parallel market" known as "NOMU" was launched, which is a platform dedicated to supporting small and medium enterprises, providing them with the opportunity to access financing and expand without having to fully comply with the strict listing requirements of the main market. The NOMU market has lower liquidity and fewer listed companies, but it offers an attractive environment for innovation and entrepreneurship, allowing investors to discover companies with high growth potential.
Furthermore, Tadawul has expanded in recent years to include specialized markets such as the sukuk and bonds market, which provides financial instruments compliant with Islamic law, targeting investors seeking stable and fixed returns. Derivative products, including futures and options, have also been introduced to provide investors with advanced tools for hedging and risk management.
Each section is managed according to specific regulatory frameworks, with central clearing mechanisms, defined trading times, and a strict supervisory system from the Capital Market Authority. The availability of these diverse sections has enabled Tadawul to attract a wide range of investors, from individuals to institutions and local and global investment funds. This flexible and developed structure supports financial stability and enhances the position of the Saudi market within the regional and international economic system.
Key Indices in the Saudi Market Trading: TASI, MT30, and NOMU
The Saudi financial market adopts an index system to measure market performance and track movements in sectors and companies. At the forefront of these indices is the "Tadawul All Share Index" known as TASI, which is the broadest index reflecting the overall performance of all listed stocks in the main market. TASI is calculated in real-time and serves as a primary reference for investors and decision-makers. For instance, TASI reached approximately 10,763 points in one of the sessions in 2023 and remained around this level until the end of 2024 – beginning of 2025, with daily fluctuations reflecting the state of the market and traded liquidity.
In addition to TASI, Tadawul has launched specialized indices such as the MSCI Tadawul 30 (MT30), which includes the largest 30 listed companies compliant with Islamic law, and is used as a tool to measure the performance of leading companies in the market. In a recent session, the MT30 index recorded a level of 1,391.63 points, reflecting the strong performance of major companies and their ability to attract local and foreign liquidity.
The NOMU parallel market has its own index that measures the performance of small and medium companies listed within it. For example, the NOMU index was at 26,333.30 points in 2024, indicating the vitality of this emerging market despite its relatively small size. These indices provide an important analytical tool for investors to monitor market fluctuations, identify trends, and compare the performance of different sectors. They also enhance transparency and assist in making decisions based on real data.
Tadawul continuously updates the index values throughout trading sessions, publishing periodic reports and analyses that explain the reasons behind daily changes, providing a comprehensive informational environment for investors and observers.
Main Economic Sectors in the Saudi Financial Market
The Saudi financial market comprises a wide range of economic sectors, reflecting the diverse structure of the national economy and providing investors with multiple options for distributing their investments. Among the most prominent sectors is the energy sector, which includes giant oil and gas companies such as Saudi Aramco, and is one of the largest sectors in terms of market capitalization and traded liquidity.
Following this is the petrochemical sector, represented by companies such as SABIC, which benefits from the abundance of raw materials and the integration of manufacturing industries in the Kingdom. The banking and financial services sector plays a leading role, with major banks providing financing and investment solutions for individuals and companies. The basic materials sector includes cement, steel, construction materials, and mining companies, and is considered an important indicator of the health of the construction sector and urban activity, especially with major government projects under Vision 2030.
There are also sectors such as telecommunications, healthcare, insurance, retail, food, and logistics, each comprising leading companies contributing to diversifying national income sources. For example, in the cement sector, companies like Hail Cement, Saudi Cement, and Yamama Cement compete to meet the increasing local demand due to government spending on infrastructure and housing projects.
This sectoral diversity allows investors to distribute risks and benefit from growth opportunities in various fields. Additionally, the performance of each sector is influenced by specific factors such as raw material prices, government policies, and changes in local and global demand, making it essential to monitor sector news and analyze their indicators to understand the dynamics of the Saudi financial market.
Role of the Capital Market Authority and Regulatory and Supervisory Procedures
The Saudi financial market is subject to strict supervision by the Capital Market Authority (CMA), which was established to set the necessary regulatory frameworks to ensure the integrity, fairness, and transparency of financial operations. The CMA plays a pivotal role in developing the market by issuing regulations, monitoring financial disclosures, and overseeing the implementation of laws governing trading, listing, and the disclosure of financial results and material news.
One of the CMA's main tasks is to regulate the listing process for companies in both the main market and the NOMU market, and to define the requirements for periodic financial disclosures, including quarterly and annual financial statements. Listed companies are committed to transparency in disclosing their results, future plans, and any material events that may affect the stock price. The CMA also imposes trading restrictions based on insider information and monitors unusual transactions to prevent market manipulation.
In recent years, the CMA has launched several initiatives to enhance investor protection, such as developing a complaints system, raising financial awareness, and updating trading systems to reduce technical risks and protect customer data. The electronic monitoring capabilities have also been enhanced, including monitoring automated trading and suspicious patterns, and applying appropriate penalties when violations occur.
Additionally, the CMA oversees programs to empower foreign investors, setting foreign ownership limits in local companies, with periodic reviews of these limits to align with market requirements and attract foreign capital. These strict regulatory measures enhance the credibility of the Saudi financial market and make it an attractive and safe environment for both local and international investors, ensuring compliance with the highest standards of transparency and governance.
Trading and Settlement Mechanisms in the Saudi Financial Market
The Saudi market trading relies on advanced electronic systems that ensure speed, accuracy, and security in executing financial transactions. The process begins with opening an investment account with a licensed brokerage firm, where the investor gains trading permissions for stocks, bonds, sukuk, and derivatives through electronic platforms available around the clock, with official trading session times typically from 10:00 AM to 3:15 PM Riyadh time.
Buy and sell orders are executed almost instantly, with a central settlement system known as T+2, meaning that financial transactions are settled within two business days after the transaction date. This system enhances financial security and provides investors with a review period, and it complies with international standards adopted in major financial markets.
Tadawul also provides additional mechanisms such as margin trading (according to CMA regulations), short selling, and private placements, giving investors flexibility in executing diverse strategies. The market manages a real-time disclosure platform for material news, allowing investors access to instantaneous information about prices, quantities, technical analyses, and periodic reports.
In terms of security, the market applies advanced data and transaction protection systems, with continuous monitoring of any unusual activities or suspicious trading patterns. Strict regulations are enforced to ensure order transparency, prevent manipulation, and protect investor rights.
The market is also characterized by high liquidity, with recent data indicating daily trading values reaching several billion riyals, with active participation from individual investors, institutions, and local and foreign funds. These modern and integrated mechanisms make Tadawul a competitive and contemporary environment that meets the aspirations of investors both domestically and internationally.
Market Size and Liquidity: Recent Indicators and Figures
The Saudi financial market is considered one of the largest exchanges in the region in terms of market capitalization and trading liquidity. Official data indicate that the total market capitalization of listed stocks in Tadawul reaches several trillion Saudi riyals, with over 200 companies in the main market and hundreds of companies in the NOMU market. This diversity reflects the depth of the market and its flexibility in absorbing local and foreign capital.
In 2024 and 2025, trading activity continued at a high pace, with the average daily transaction value reaching several billion riyals, indicating high liquidity and strong investment attractiveness. For example, the TASI index recorded levels approaching 10,763 points in one session, while it stabilized around the 10-11 thousand point range until the end of 2024, amid natural fluctuations associated with local and global economic movements.
The market features high trading volumes in vital sectors such as energy, petrochemicals, banking, and construction materials, where the largest liquidity is concentrated due to the interest of local and international investors. Additionally, regulatory reforms, increased foreign ownership percentages, and the listing of large government companies have contributed to enhancing liquidity and increasing market depth.
The cement sector, in particular, witnessed notable activity during 2024, supported by government-led infrastructure and housing projects, despite some seasonal fluctuations in demand. The total profits of cement companies reached around 2 billion riyals in the first nine months of 2024, reflecting the sector's resilience and its ability to adapt to economic changes. These indicators and figures confirm that the Saudi market trading continues to maintain its position as a primary platform for attracting capital and providing diverse investment opportunities.
Listed Companies: Examples from the Cement Sector – Hail Cement
The cement sector is one of the vital sectors in the Saudi financial market, playing a central role in supporting infrastructure and housing projects under Vision 2030. Among the listed companies in this sector, Hail Cement stands out as a model of a medium-sized company focused on meeting local demand in the Hail region and the north.
Hail Cement's stock is traded under the symbol 3001, with a market value of several billion riyals, and an issued capital consisting of hundreds of millions of shares. The stock price in mid-2024 ranged in the mid-twenties of riyals, characterized by moderate volatility, as it is influenced by sector news and major government projects.
Financially, the company's price-to-earnings ratio typically falls between 15 and 25, reflecting an average level of valuation compared to other industrial sector companies. The company follows a policy of annual dividend distribution when profits are good, with cash distributions in some years reaching 4-5% of the nominal value of the share, approximately 0.4-0.5 riyals per share with a nominal value of 10 riyals. This means that the annual return for shareholders ranges between 3-5% approximately if the same policy continues.
Hail Cement faces strong competition from larger companies such as Saudi Cement, Yamama Cement, and Tabuk Cement, which constantly drives it to improve its operations and enhance production efficiency. The company's performance is closely linked to the level of activity in the construction sector and the availability of government projects in its geographical area. Overall, Hail Cement's experience reflects the dynamism of the Tadawul market and how medium-sized companies can play an important role in supporting the local economy and sectoral growth.
Sector Analysis: Competition, Performance, and Influencing Factors
The cement sector in the Saudi financial market is characterized by a large number of competing companies, including Saudi Cement, Yamama Cement, Tabuk Cement, and Hail Cement. These companies compete to meet the increasing demand for building materials, especially amid the massive infrastructure projects being implemented by the Saudi government.
The sector experienced relative stability in profits during 2024, with total profits of cement companies reaching approximately 2 billion riyals in the first nine months of the year, with profits for the third quarter amounting to 648.3 million riyals. However, profits in the second quarter were lower than expected by 11%, reflecting seasonal fluctuations associated with changes in demand and input prices.
The profitability of companies is influenced by several key factors, including local demand driven by housing and facility projects, production costs associated with energy, fuel, and electricity prices. The production quotas allocated by the Saudi Basic Industries Corporation also play an important role in distributing the market among companies, as an increase or decrease in the quota affects a company's ability to increase its sales.
The market is also affected by government policies, such as environmental fees or energy support initiatives, as well as changes in global raw material prices. Conversely, the strict regulatory environment and the level of competition pose challenges for medium-sized companies like Hail Cement, which must develop products and improve efficiency to ensure their market share.
Overall, the cement sector remains sensitive to any economic or governmental changes, and its performance reflects the strength of the Saudi financial market and its ability to absorb shocks and support sustainable development.
The Role of Government Projects and Vision 2030 in Stimulating the Market
Major government projects play a pivotal role in driving economic development in the Kingdom of Saudi Arabia, and this impact is clearly reflected in the performance of the Saudi financial market. Under Vision 2030, the Saudi government has launched a series of initiatives and major projects, such as the NEOM project, Qiddiya, and expansions of housing projects, which require massive investments in construction and basic materials sectors.
These projects have contributed to increasing demand for products from cement, steel, and construction materials companies, positively impacting the profits of companies listed in Tadawul, especially in the building materials sectors. For instance, the commencement of the NEOM project in northern Saudi Arabia has led to increased demand for cement in the surrounding areas, providing companies like Hail Cement with an opportunity to boost their sales.
The Saudi government is also pursuing supportive policies to stimulate the private sector by facilitating financing, developing infrastructure, and issuing new legislation that supports local and foreign investment. Additionally, partnerships between the public and private sectors have created an attractive investment environment and increased liquidity in the financial market.
On the other hand, the government is keeping pace with global trends towards environmental sustainability by encouraging companies to adopt lower-emission production technologies and use renewable energy. This opens new horizons for companies looking to develop their technologies and reduce operating costs.
Overall, government projects under Vision 2030 are a major driver of growth in the Saudi financial market, providing renewed opportunities for listed companies to enhance their profits and increase their market value while maintaining sustainability and competitiveness in the national economy.
Foreign Ownership and Regulatory Reforms and Their Role in Attracting Investment
The Saudi financial market has witnessed a series of regulatory reforms aimed at opening the market to foreign investors and enhancing its global attractiveness. These reforms began with setting limited foreign ownership percentages in listed companies, which have gradually increased to nearly 30% by 2025, allowing major global investment funds to enter the market.
These steps have created a conducive environment for the flow of foreign investments, especially after the market's inclusion in global indices such as MSCI and FTSE, making Saudi stocks an essential part of international investors' portfolios. This has led to increased liquidity, higher trading volumes, and improved disclosure and transparency levels in the market.
The reforms also included updating the regulations governing trading operations, simplifying the procedures for opening investment accounts, and improving investor services through electronic platforms. These improvements have helped raise governance standards, reduce risks, and enhance the confidence of both local and foreign investors.
On another front, the Qualified Foreign Investor (QFI) program has allowed foreign institutions to invest directly in Saudi stocks, adhering to strict standards to ensure integrity and legal protection. The regulations governing financial disclosure have also been developed, requiring listed companies to publish detailed periodic reports on their financial and operational performance.
These regulatory reforms have made Tadawul a competitive platform on both regional and international levels, contributing to raising the Kingdom's ranking within emerging market indices, enhancing growth opportunities, and attracting foreign capital to contribute to sustainable economic development.
Performance of the Saudi Cement Sector in 2024-2025: Data and Analysis
The Saudi cement sector has shown balanced performance during 2024 and 2025, supported by increased demand for building materials due to major government projects, particularly in infrastructure and housing. According to recent data, total profits of cement companies reached around 2 billion riyals during the first nine months of 2024, with 648.3 million riyals achieved in the third quarter alone. These figures reflect the sector's resilience and its ability to adapt to economic and seasonal changes.
Despite this positive performance, the sector experienced a relative slowdown in the second quarter of 2024, with profits falling 11% below expectations, indicating seasonal fluctuations in demand or increases in production costs such as fuel and electricity prices. This change is attributed to factors such as delays in executing some projects or rising input costs, but the sector rebounded with the acceleration of government projects in the second half of the year.
Regarding distributions, most cement companies maintained an annual dividend distribution policy when profits were good, providing shareholders with relatively stable cash returns. The sector also witnessed improvements in operational efficiency, with companies striving to reduce expenses and enhance production processes to face intense competition.
Cement companies are also affected by external factors such as global raw material prices, changes in environmental policies, and developments in the local real estate market. Overall, the sector's performance in 2024-2025 demonstrates its continued vital role in the Saudi economy, with growth opportunities if infrastructure projects continue at the same pace.
Economic and Geopolitical Factors Affecting the Saudi Market Trading
The Saudi market trading is influenced by a range of economic and geopolitical factors that determine market trends, liquidity levels, and the performance of indices. At the forefront of these factors are global oil prices, as the Kingdom is the largest oil producer in the world, making the state's revenues and investment liquidity closely linked to crude oil price movements. Any significant rise or fall in oil prices immediately reflects on investor sentiment and stock values in sensitive sectors such as energy and petrochemicals.
National mega-projects, such as NEOM and Qiddiya, and government policies related to public spending also affect demand levels in sectors such as building materials, housing, and financial services. Additionally, changes in interest rates, inflation, and monetary policies play a fundamental role in determining financing costs and the level of risk for investors.
On the geopolitical level, political and security stability in the region, along with trade relations with international partners, significantly impacts the flow of foreign investments and capital movements. Furthermore, the market's inclusion in global indices such as MSCI and FTSE has increased the Saudi market's correlation with global fluctuations, making it more sensitive to major economic events outside the Kingdom.
On the other hand, regulatory changes, such as updating foreign ownership regulations or introducing new financial products, affect the market's attractiveness and liquidity. All these factors combined impose a continuous need for investors to monitor economic and geopolitical news and analyze the potential impacts on market performance and listed companies.
The Importance of Financial Reports and Disclosure in Evaluating Saudi Companies
Periodic financial reports play a crucial role in evaluating the performance of companies listed in the Saudi market trading, as they represent the primary source of information relied upon by investors to analyze financial statements and make investment decisions. Listed companies are required to disclose their financial results quarterly and annually, including income statements, balance sheets, cash flow statements, and accompanying management reports.
Financial reports include key indicators such as revenues, net profits, price-to-earnings ratio (P/E), and return on equity, allowing investors to compare the performance of companies within the same sector or across different sectors. For example, if a company like Hail Cement announces growth in its quarterly profits or an increase in dividends, this is considered a positive indicator that may reflect on the stock price and its market position.
The Capital Market Authority imposes strict rules regarding the timing and scope of disclosures, with penalties for companies that are late or provide inaccurate information. The CMA also monitors disclosures of material events such as signing large contracts, changes in executive management, or changes in operational policies, ensuring continuous transparency and fairness for all market participants.
Additionally, official trading platforms and the websites of listed companies provide quick access to financial reports, analyses, and real-time disclosures, enhancing investors' ability to assess risks and opportunities objectively. Overall, financial disclosure is a fundamental element in building trust in the Saudi financial market and a cornerstone for making investment decisions based on accurate and verified data.
Future of the Saudi Market Trading: Challenges and Opportunities
The Saudi market trading faces a range of challenges and opportunities that will determine its trajectory in the coming years. Among the most significant challenges are fluctuations in global oil prices, which directly impact the national economy and the liquidity available for investment in the financial market. Additionally, regional competition from emerging markets in the Gulf and the need to comply with international standards compel Tadawul to continue updating its systems and financial products.
On the other hand, the Kingdom's shift towards diversifying the economy and reducing dependence on oil presents an opportunity to enhance new sectors such as technology, tourism, and logistics, which may lead to the listing of innovative and startup companies in the market in the future. Furthermore, the continuation of major government projects under Vision 2030 opens wide horizons for the construction, housing, and industrial sectors.
Increasing foreign ownership, the market's inclusion in global indices, and improving the regulatory environment are all factors contributing to enhancing the market's attractiveness to global and local investors. Additionally, technological advancements in trading systems and the expansion of derivative products and sukuk enhance the diversity of investment options.
However, the need remains to enhance transparency, raise the level of financial disclosure, and improve the quality of periodic reports to ensure sustained trust in the market. Monitoring risks associated with global geopolitical and economic changes and quickly adapting to regulatory and technological changes are also essential. Ultimately, the Saudi market trading holds significant growth potential if development efforts continue, with a commitment to adhering to the highest standards of governance and protecting investor rights.
Conclusion
In conclusion, Tadawul represents a dynamic financial platform that combines liquidity depth, sector diversity, and efficient regulatory structure, making it an attractive point for both local and foreign investors. The performance of the financial market reflects the health of the national economy, showcasing companies from various sectors such as cement, energy, banking, and services, where economic factors, government projects, and regulatory reforms play a pivotal role in directing the market's course.
Recent data demonstrate the market's resilience in facing fluctuations, with a clear interaction with local and global changes, and sectors such as cement have seen profit growth thanks to infrastructure projects. At the same time, the Capital Market Authority imposes strict rules to ensure transparency and protect investors, while ongoing reforms continue to enhance the market's attractiveness on both regional and international levels.
It is important to emphasize that investing in the financial market involves risks and challenges that require careful study of financial data, monitoring economic developments, and analyzing periodic reports. Before making any investment decision, it is always advisable to consult a licensed financial advisor to ensure decisions are based on a precise understanding and objective analysis of the opportunities and risks associated with the Saudi financial market.
Frequently Asked Questions
The TASI index is the official general index of the Saudi financial market "Tadawul," encompassing nearly all stocks listed in the main market. TASI is used as a measure of overall market movement, reflecting the collective performance of listed companies in the stock exchange. The index is calculated in real-time during trading sessions and serves as a primary reference for investors and decision-makers to assess market trends. For example, official data showed that TASI reached approximately 10,763 points in one of the sessions in 2023 and remained within the 10-11 thousand point range until the end of 2024. Monitoring TASI helps investors understand the general market sentiment and identify the right times to make their financial decisions.
The main market in Saudi trading includes large companies with substantial capital and is subject to strict listing requirements and precise periodic financial disclosures, such as energy, banking, and industrial companies. The NOMU market, on the other hand, is a parallel market dedicated to small and medium enterprises, with simpler listing conditions, aimed at supporting the growth of these companies and providing them with opportunities for financing and expansion. The NOMU market has lower liquidity and size compared to the main market, but it offers a suitable environment for startups and investors looking to discover high-risk growth opportunities. Both markets are supervised by the Capital Market Authority and benefit from the advanced electronic trading platform.
The market capitalization of any listed company in Tadawul is calculated by multiplying the current stock price by the number of shares issued by the company. For example, if the stock price of a company is 25 riyals with 100 million shares, the market capitalization equals 2.5 billion riyals. Market capitalization is used as an indicator of the company's size in the market and helps investors compare different companies within the same sector or across multiple sectors. It reflects investor confidence in the company and changes daily based on stock price fluctuations in the market.
The price-to-earnings ratio (P/E) is one of the most important analytical indicators in evaluating Saudi stocks, calculated by dividing the current stock price by the annual earnings per share. This ratio indicates the number of years an investor needs to recover their investment in the stock based on the company's current earnings. A high P/E may mean that the market expects high growth in the company's earnings or that the stock is overvalued. Conversely, a low P/E may indicate good value or challenges facing the company. In Saudi cement companies, the P/E often ranges between 15 and 25, and it is advisable to compare it with the sector average during evaluation.
Major government projects such as NEOM and Qiddiya directly impact the Tadawul market by increasing demand for products from sectors such as building materials, housing, and services. When the government launches massive infrastructure projects, this is reflected in the rising profits of companies listed in these sectors, increasing trading volume and liquidity in the market. These projects also attract new investments and support the growth of small and medium companies listed in the NOMU market. Overall, government projects are a key driver of growth in the Saudi financial market and enhance its attractiveness to local and international investors.
The Saudi financial market has gradually allowed an increase in foreign ownership percentages in listed companies, nearing 30% by 2025. Qualified foreign investors (QFI) can invest directly in Saudi stocks under specific regulations, such as having a minimum amount of assets under management and complying with regulatory standards. Non-qualified investors can enter through investment funds or traded products in the market. These policies aim to attract foreign capital, enhance liquidity, and raise the market's ranking within global indices while protecting the national economy.
The Capital Market Authority requires all companies listed in Tadawul to disclose their financial results periodically, with quarterly and annual financial statements published through official market platforms. The disclosure includes income data, balance sheets, cash flows, and management reports. Immediate disclosure of any material events such as signing large contracts or management changes is also required. Companies face penalties for delays or providing inaccurate data. This system enhances transparency and helps investors make decisions based on accurate and up-to-date information.
The performance of the Saudi cement sector is influenced by several factors, primarily local demand for building materials linked to government housing projects, production costs (especially energy and raw materials), production quotas allocated to each company, and government policies such as environmental fees or support initiatives. Competition among companies also plays a crucial role in determining prices and profits. Additionally, global raw material price changes and inflation affect operating costs. These combined factors determine the profitability of listed companies and impact stock movements in the market.
To open a trading account in the Saudi financial market, one must first choose a brokerage firm licensed by the Capital Market Authority. Then, required documents such as a national ID or residency must be submitted, and investment account opening forms must be filled out. Brokerage firms provide electronic trading platforms that allow buying and selling stocks, bonds, and sukuk. Once the account is activated, the investor can execute buy and sell orders during official trading hours. It is advisable to review the investor guide provided by the Capital Market Authority to understand the risks and regulatory procedures before starting trading.
Tadawul sets official times for trading sessions, typically starting daily from 10:00 AM to 3:15 PM Riyadh time, from Sunday to Thursday. During this period, buy and sell orders can be executed on stocks, sukuk, and bonds. There are also designated times for trading outside sessions for certain products like derivatives. Any changes in trading times are announced on the official market website, especially during public holidays or national events. Adhering to trading times ensures fairness in executing transactions and market transparency.
Yes, foreign individuals can invest in Saudi trading through the Qualified Foreign Investor (QFI) program, provided they meet the eligibility requirements set by the Capital Market Authority. These requirements include having a minimum amount of assets under management and adhering to regulatory standards. Non-qualified individuals can invest in the market through investment funds or traded products. Current policies allow for foreign ownership of up to 30% in some listed companies. These measures aim to enhance liquidity and attract foreign capital while protecting local market interests.
The Capital Market Authority plays a fundamental role in protecting investors by establishing necessary regulatory frameworks, monitoring financial disclosures, and overseeing the implementation of laws governing trading operations. The CMA ensures the integrity and fairness of the market and imposes penalties for violations such as delays in disclosure or price manipulation. It also provides a developed complaints system and works to raise financial awareness among investors. The CMA electronically monitors trading activities to detect any suspicious patterns and applies deterrent penalties when necessary. These policies ensure a transparent and safe investment environment for all participants.