The stock market plays a pivotal role in the Saudi economy, serving as the primary platform for trading securities. From the beginning of 2024 through the first quarter of 2025, the Saudi stock market (Tadawul) has witnessed significant developments in terms of indicators and trading volume, alongside transformations in leading sectors such as banking, energy, telecommunications, and petrochemicals. In this article, we provide a comprehensive analysis of the stock market, focusing on market structure, financial indicators, core sectors, leading companies, and recent regulatory developments. We also clarify trading mechanisms, the regulatory frameworks overseen by the Capital Market Authority (CMA), and the most common questions from new investors. If you seek an in-depth understanding of the nature of the Saudi stock market, the key influencing factors, and how to track indicators and approved financial data, we have prepared this guide to serve as your comprehensive reference. Throughout the article, we aim to present information in an educational and neutral manner, free from any investment recommendations or price forecasts, while emphasizing the importance of consulting a licensed financial advisor before making any investment decisions.
What is the Saudi Stock Market (Tadawul)?
The Saudi stock market, known as "Tadawul," is the main financial market for trading securities in the Kingdom of Saudi Arabia. The market includes a wide range of listed companies representing diverse economic sectors such as banking, energy, petrochemicals, telecommunications, industry, real estate, and more. The Capital Market Authority (CMA) oversees the market, while the Saudi Stock Exchange (Tadawul) manages daily operations and trading regulations. The market allows individual and institutional investors to buy and sell shares in listed companies through licensed financial brokers. The Saudi stock market is characterized by high transparency, as listed companies are required to regularly disclose their financial results, annual reports, and material news that may impact stock prices or the market as a whole. The market serves as an important financing tool for the private sector and reflects the dynamics of the national economy. With the evolution of the regulatory environment and the opening of the market to foreign investors, "Tadawul" has become a key player on the global emerging markets map.
Market Structure: Main Market and Parallel Market (Nomu)
The Saudi stock market is divided into two main markets: the Main Market and the Parallel Market (Nomu). The Main Market is the largest in size and includes companies with large capital, high liquidity, and higher distribution ratios. It is subject to stringent listing requirements and high transparency, containing the majority of leading stocks that form the backbone of the market index (TASI). In contrast, the Parallel Market (Nomu) was established to encourage small and medium-sized enterprises to list under a more flexible regulatory framework. This market aims to stimulate entrepreneurship and provide new investment options with relatively higher risks and liquidity. Both markets operate within the same electronic platform, allowing companies to transition from Nomu to the Main Market upon meeting requirements. This structure enables investors to diversify their investments between mature companies and emerging ones, in accordance with the disclosure and governance policies applied by the CMA.
Key Indicators of the Saudi Stock Market and Their Performance 2024-2025
The Saudi Financial Market Index (TASI) is the main index that reflects the performance of all companies listed in the Main Market. By the end of 2024, the index closed at 12,036.50 points, marking a slight increase of 0.58% from 2023. The index experienced fluctuations throughout the year, reaching its highest level at 12,835.65 points in March 2024. In the first quarter of 2025, the index declined by 3.04% to close at 12,025.05 points, indicating temporary pressures related to liquidity and global economic factors. Other important indicators include trading volume and value, with trading volume in 2024 reaching approximately 1,862.33 billion SAR (an increase of 39.7% from 2023), and the number of executed trades at 128.57 million (an increase of 36.76%). The total market capitalization reached 10,200.24 billion SAR by the end of 2024, declining to 9,918.69 billion SAR at the end of the first quarter of 2025. These data reflect the market's dynamics and resilience in facing economic changes.
Main Sectors in the Saudi Stock Market
The companies listed in the Saudi stock market are distributed across several main sectors, each playing a pivotal role in the economy: 1- Banking and Financial Services Sector: the largest by weight in the market, includes major banks such as National Commercial Bank, Al Rajhi Bank, Riyad Bank, and Alinma Bank. 2- Energy and Oil Sector: led by Saudi Aramco, the largest company by market capitalization. 3- Petrochemicals Sector: including SABIC, Yansab, and Petro Rabigh. 4- Telecommunications and Information Technology Sector: led by Saudi Telecom Company (STC), with competitors such as Zain and Mobily. 5- Renewable Energy and Electricity Sector: includes projects like ACWA Power and Saudi Electricity Company. 6- Consumer and Real Estate Sector: includes companies like Al-Hokair Group and real estate development companies. 7- Mining and Manufacturing Sector: led by Ma'aden and phosphate extraction companies. The performance of each sector depends on specific economic and regulatory factors, such as commodity prices, global demand, government policies, and technological innovation.
Leading Companies in the Market and Performance Analysis
Leading companies play a central role in the movement of the Saudi stock market. Among the most notable are: 1- Saudi Aramco (Symbol: 1111): a global oil giant, its revenues constitute a significant part of the Kingdom's economy and are characterized by high profit margins and substantial dividend yields. 2- National Commercial Bank (SNB): the largest bank by assets, benefiting from the strength of the financial sector and improved banking operational profits. 3- Saudi Telecom Company (STC): the main provider of telecommunications services, achieving revenue growth from data services and digital transformation. 4- SABIC: a leading petrochemical company, its revenues depend on global demand and oil prices. The movement of the TASI index is largely linked to the performance of these companies, as their relative weight constitutes a significant percentage of the overall index. Their quarterly results and dividends remain a focal point for both local and international investors.
Competition Among Companies and Sectors in the Saudi Market
The dynamics of the Saudi market are partially determined by competition among companies within each sector. In the banking sector, commercial and Islamic banks compete to offer banking products and attract customers through digital services. In the energy and petrochemicals sector, Aramco and SABIC compete with local and global companies for market share and innovation. The telecommunications sector sees competition between STC, Zain, and Mobily in 5G services and data. Meanwhile, the consumer and real estate sector experiences competition among retail companies, real estate development firms, and real estate investment trusts. Competition contributes to improving service quality and increasing investment options, while enhancing innovation in financial products and services. Local competition also intersects with global competition, especially in sectors with an export dimension or those targeting international markets.
Regulatory Measures, Transparency, and the Role of the CMA
The Saudi stock market is overseen by the Capital Market Authority (CMA), which establishes strict regulatory frameworks aimed at protecting investors and ensuring transparency. Measures include requiring companies to regularly disclose financial results, regulating trading operations, preventing manipulation or insider trading, and imposing penalties on violators. In 2024-2025, the CMA issued licenses for new investment companies and innovative index funds, encouraging the diversification of investment products such as algorithm-backed funds. It also launched measures to deepen liquidity, such as allowing international institutions to provide market-making services. These regulations enhance trust and contribute to the market's maturity and integration with global markets, aligning with Vision 2030 for a diversified and investment-attractive Saudi economy.
Trading Mechanisms and Working Hours in the Saudi Stock Market
Trading in the Saudi stock market is conducted through licensed brokers, where individual and institutional investors can open investment accounts after meeting regulatory requirements. Trading occurs weekly from Sunday to Thursday, with a morning session from 10:00 AM to 12:30 PM, followed by an afternoon session from 2:30 PM to 3:30 PM. The market sets daily price fluctuation limits to curb sharp speculation. Buy and sell orders are executed electronically through approved trading platforms. Listed companies are also required to issue their financial statements at specified times, allowing investors to follow developments in real-time. Official holiday schedules and updates on working hours can be tracked via the official Tadawul website.
Key Financial Indicators: Price-to-Earnings Ratio and Dividend Yield
Among the most important tools for evaluating stocks: 1- Price-to-Earnings Ratio (P/E): measures the ratio of a stock's price to its annual earnings, indicating the number of years required to recover capital through profits. It is often low in stable and established companies like Aramco and major banks. 2- Dividend Yield: represents the ratio of dividends paid per share to its market price, indicating the cash return to investors. Large companies in Saudi Arabia tend to distribute good percentages of profits (often between 4% and 6%). 3- Revenue Growth: measures the development of a company's income over time. All these indicators are available through quarterly company reports or official financial data platforms like Tadawul and Argaam. Their use is essential for monitoring company valuations, considering that indicators vary by sector and market nature.
Reliable Financial Information Sources for Investors
Listed companies in the Saudi market are committed to disclosing their financial data quarterly and annually, and this data can be obtained from several reliable sources: 1- The official Tadawul website: provides complete financial reports, disclosure statements, material news, and market indicators. 2- The Capital Market Authority's website: publishes regulatory updates and guides for investors. 3- The companies' own websites (Investor Relations section): display financial data, annual reports, and profit announcements. 4- Specialized data platforms like "Argaam": provide comparative tables and detailed financial analyses. It is always advisable to rely on these sources for accurate and reliable data, while keeping up with quarterly updates.
The Role of the Stock Market in the Saudi Economy and Vision 2030
The Saudi stock market is one of the essential pillars for financing the private sector and supporting the economic diversification projects targeted by Vision 2030. Through the market, companies can raise new capital through initial public offerings and capital increases, supporting employment and economic growth. Additionally, opening the market to foreign investors and its inclusion in global emerging market indices has led to increased liquidity and attracted international investments. The market plays a role in enhancing transparency and governance, providing diverse financial products (such as exchange-traded funds and derivatives), which enhances the efficiency of the national economy and increases the Kingdom's attractiveness as a regional and international financial center.
Recent Developments and Influential News in the Stock Market 2024-2025
The period of 2024-2025 witnessed several notable developments that impacted the Saudi stock market: 1- New regulations from the CMA to support transparency and grant licenses to investment companies and innovative funds. 2- Improved trading volume and value in 2024, contrasted with a relative decline in the first quarter of 2025 due to global liquidity pressures. 3- The market's response to fluctuations in oil prices and geopolitical events, especially with changes in OPEC+ production and their impact on energy stocks. 4- The listing of startups and new tech companies in the Nomu market, enhancing market diversity. 5- Increased interest from foreign funds following the market's upgrade in MSCI emerging market indices. 6- Ongoing major projects like NEOM and Qiddiya, reflecting on the real estate and infrastructure sectors. All these developments affirm the market's vitality and its interaction with local and global updates.
Fees and Taxes in the Saudi Stock Market
The Saudi financial market imposes low transaction fees on stock buying and selling operations, with details transparently announced through official brokers. Currently, there are no taxes on capital gains or dividends for individuals, making the Saudi market attractive to local and international investors. Listed companies pay income tax on their profits according to tax regulations, but this tax does not apply directly to individual investors. It is advisable to review the broker for details on fees and other trading costs, and to stay informed about any regulatory updates that may arise from the CMA.
Investor Protection and the Role of the Authority in Regulating the Market
The Capital Market Authority (CMA) focuses on protecting investors by implementing strict transparency and disclosure regulations, punishing any violations such as illegal trading or financial misrepresentation. The authority provides educational guides for new investors, publishes periodic reports on market performance and listed companies, and allows investors to file official complaints in case of illegal practices. All these measures aim to ensure the integrity and stability of the market, enhancing the confidence of both local and foreign investors.
Conclusion
The Saudi stock market represents a fundamental platform for national economic growth and diversifying investment sources in line with Vision 2030. The market offers multiple investment options across diverse sectors, with high transparency and strong regulatory oversight from the Capital Market Authority. During the period 2024-2025, the market witnessed significant developments in financial indicators, the listing of new companies, and supportive regulations to enhance liquidity and transparency. However, financial markets remain susceptible to fluctuations resulting from local and global factors, requiring investors to understand the nature of the market and financial evaluation tools. It is essential not to rely on any individual advice or forecasts; rather, it is advisable to consult a licensed financial advisor before making any investment decisions. The SIGMIX platform provides you with comprehensive and updated educational content about the Saudi stock market, and we invite you to refer to a certified financial specialist for recommendations that suit your investment goals.
Frequently Asked Questions
The TASI (Tadawul All Share Index) is the main index of the Saudi stock market, reflecting the performance of all companies listed in the Main Market. You can track the index through the official Tadawul website (www.saudiexchange.sa) or through financial market bulletins and economic news platforms. The website provides daily data on the index level, relative changes, and the performance of the sectors and companies that comprise the index.
To open a trading account, you must choose a licensed financial broker from the CMA, fill out an investment account opening application, and provide documents such as identification or residency and a bank account. After activating the account, you can transfer funds to it and start executing buy and sell orders electronically through the broker's platform.
The Main Market includes large companies with high capital and liquidity and is subject to strict listing conditions. The Nomu Market is a parallel market dedicated to small and medium-sized enterprises with more flexible listing conditions, supporting entrepreneurship and providing diverse investment opportunities with relatively higher risks and liquidity.
The Saudi market operates from Sunday to Thursday, with a morning session from 10:00 AM to 12:30 PM, and an afternoon session from 2:30 PM to 3:30 PM. Any updates or changes to the trading schedule can be viewed on the official Tadawul website.
Key indicators include the Price-to-Earnings Ratio (P/E), which measures the ratio of a stock's price to its earnings; the Dividend Yield, which expresses the ratio of distributed profits; and annual revenue growth. These indicators are available in quarterly financial reports and through financial data platforms like Tadawul and Argaam.
Quarterly and annual financial reports are available on the official Tadawul website, the CMA's website, the companies' (Investor Relations section), and data platforms like Argaam. It is advisable to rely on these sources for accurate and reliable updates.
Low transaction fees are imposed on each trading transaction, determined by the broker and announced by Tadawul. Currently, there are no taxes on capital gains or dividends for individuals, while companies pay income tax on their profits according to Saudi regulations.
The CMA implements strict transparency and disclosure regulations, monitoring trades to prevent any manipulation or illegal trading. It also publishes educational guides for investors and periodic reports, allowing for the filing of complaints in case of violations, enhancing investor protection and confidence in the market.
The market is influenced by fluctuations in oil prices, global interest rates, the results of leading companies, local economic news, and changes in liquidity. Government policies and Vision 2030 projects also impact investor confidence and market dynamics.
The inclusion of the Saudi market in indices like MSCI for emerging markets has attracted significant foreign investments, increased liquidity, and improved market efficiency, enhancing the Kingdom's position as a regional and global financial hub.
You can follow the latest market news and regulatory developments through the official Tadawul website, press releases from the CMA, economic news platforms, and specialized financial data sites like Argaam.
Yes, the Saudi market has been open to qualified foreign investors for several years, allowing them to own shares in listed companies according to the CMA's regulations, enhancing the market's depth and diversity.