The Tadawul TASI index is the most important benchmark in the Saudi stock market, representing the collective performance of all listed companies in the Saudi financial market (Tadawul). Launched in the early 1980s, the index is now a key tool for tracking changes in the Saudi economy and the development of various sectors such as energy, petrochemicals, banking, and telecommunications. The Tadawul TASI relies on a free-float market capitalization methodology, accurately reflecting capital movements and changes in investor confidence. During 2024 and 2025, the index continued to fluctuate, influenced by several local and global factors such as oil prices, monetary policies, and developments related to Saudi Vision 2030. In this detailed article, we explore everything related to the TASI index: its definition, calculation method, historical development, annual performance, sector impacts, key constituent companies, and significant events that have recently affected its trajectory. We also explain how interested parties can track the index and leverage its data for financial analysis. If you wish to understand the dynamics of the Saudi market comprehensively, knowing the details of the Tadawul TASI and its background will be the essential first step.
What is the Tadawul TASI Index? Definition and Origin
The Tadawul TASI index is the main index of the Saudi stock market, also known as the comprehensive index for all companies listed in the Saudi financial market (Tadawul). The index originated in the early 1980s when the Saudi market opened, with a base value of 1000 points. Its primary function is to measure the overall performance of the Saudi stock market, covering all companies without exception. TASI is distinguished as a benchmark index used to compare the performance of investment portfolios, funds, or even individual sectors. The index's components are updated periodically to include newly listed companies or exclude those that have been delisted. The management of the index is officially handled by the Saudi Stock Exchange under the supervision of the Capital Market Authority (CMA), ensuring transparency and accuracy in the index's calculation and adherence to international standards for financial indices.
Calculation Method of Tadawul TASI: Free Float Market Capitalization
The calculation of the Tadawul TASI index is based on the free float market capitalization methodology. The index is calculated by multiplying the price of each share by the number of shares available for public trading (free float), then summing the market values of all listed shares. This total is divided by a reference value established at the inception of the index, with periodic updates reflecting changes in market structure. This methodology gives greater weight to companies with higher market capitalizations, meaning that movements in large stocks, such as Aramco or SABIC, significantly influence the direction of the index. This method is globally recognized for calculating major financial market indices, making TASI comparable to global indices such as the S&P 500 or MSCI EM. Any changes in the number of free shares (due to capital increases or rights distributions) are directly reflected in the index calculation, ensuring fair representation of the actual market.
Performance Evolution of Tadawul TASI During 2024-2025 in Numbers
The Tadawul TASI index experienced notable fluctuations in performance during 2024 and 2025 due to the interplay of several global and local economic factors. The index ended 2024 at 12,226 points, up 0.6% from the end of 2023. In the first quarter of 2025, the index declined to 12,037 points (-1.5%), and in the second quarter, it stabilized at 12,025 points, before experiencing a significant drop in the third quarter to 11,164 points, down 7.2%. This decline in Q3 2025 reflects the market's response to factors such as global monetary policies, intensifying competition, and fluctuations in oil prices. The numbers indicate a state of relative stability at the beginning of 2025 after moderate gains at the end of 2024, followed by a downward trend in the second half of 2025. Analyzing this data highlights the importance of monitoring economic developments that impact the index to understand the dynamics of the Saudi market.
Components of TASI Index: Key Companies and Sectors
The Tadawul TASI index consists of approximately 210 listed companies in the main market (as of the end of 2024), distributed across 21 key sectors. The companies with the largest weight in the index include: Saudi Aramco (Energy sector), SABIC (Petrochemicals), Al Rajhi Bank and National Commercial Bank (Financial sector), and Saudi Telecom Company STC (Telecommunications sector). These companies primarily contribute to the movements of the index, with Aramco alone accounting for about 30-35% of the index's weight. The main sectors influencing TASI are energy and basic materials (about 40-45% of market capitalization), the financial sector (20-25%), telecommunications (10-15%), in addition to the industrial sector, consumer services, and healthcare. This sectoral diversity provides the index with significant comprehensiveness and makes its performance reflective of the overall Saudi economy.
Analysis of Sectors Comprising Tadawul TASI
The Tadawul TASI index covers all listed economic sectors, with a clear concentration in the energy, petrochemicals, and finance sectors. The energy sector (Aramco, SABIC) is the most influential on the index, as its results depend on global oil and gas prices. Rising oil prices in 2024 supported the profits of these companies and contributed to lifting the index. The financial sector includes major banks such as Al Rajhi and National Commercial Bank, relying on local liquidity and interest rates. The telecommunications sector (such as STC) provides relative stability to the index due to regular dividend distributions. Other sectors, such as industry, healthcare, and real estate, have a lower weight but are gaining increasing importance as the Saudi economy diversifies under Vision 2030. Any changes in global trends (such as inflation or interest rates) quickly reflect on these sectors, which in turn affects the index as a whole.
Factors Influencing the Movement of TASI Index
Several key factors influence the movement of the Tadawul TASI index, most notably: global oil prices, as the Saudi economy and major listed companies heavily depend on energy revenues. Global monetary policies, especially movements in interest rates by major central banks, affect the flow of liquidity into Saudi markets. Additionally, local government policies, such as raising the foreign ownership limit or investment incentives, play a role in attracting capital and stimulating the market. Furthermore, the results of leading companies (Aramco, SABIC, major banks) directly impact the index, as positive results push the index higher and vice versa. Finally, global economic and political events (such as U.S. elections or market disruptions) have both psychological and actual effects on investor sentiment within the Kingdom.
Financial Performance of Major Companies Comprising the Index
Major companies such as Saudi Aramco, SABIC, Al Rajhi Bank, and National Commercial Bank play a pivotal role in the performance of the Tadawul TASI index. Taking Aramco as an example: the share price in 2025 ranged between 34-36 SAR, with a market capitalization of approximately 4.5-5 trillion SAR, and a price-to-earnings (P/E) ratio between 20-25. Aramco's profits in the last quarter of 2024 were around 150-200 billion SAR, with an annual increase exceeding 50%. As for SABIC, its share price reached 84 SAR, with a market capitalization of about 300-350 billion SAR, showing significant revenue growth. The financial sector (Al Rajhi, National Commercial Bank) experienced annual dividend distributions between 3-5% and a P/E ratio of 15-20. These figures highlight how the movements of these companies' stocks significantly impact overall market indices and TASI in particular.
Comparing Tadawul TASI with Regional and Global Indices
The Tadawul TASI index is often compared to other indices in the Gulf and worldwide, such as the Dubai Index, Abu Dhabi Stock Exchange, and emerging market indices (MSCI EM). Given the Saudi economy's reliance on oil, TASI is significantly affected by energy prices compared to indices like the S&P 500 or Nikkei. In 2024, TASI achieved moderate gains (+0.6% annually), while some global markets experienced greater volatility due to technological developments or geopolitical changes. Additionally, competition with the parallel market (NOMU) within Saudi Arabia is limited in size, but some investors prefer it for seeking higher growth opportunities. The Kingdom's inclusion in MSCI and FTSE indices attracted international institutional interest, making TASI more connected to global capital flows, especially as the market gradually opened to foreign investors.
Recent Developments in the Saudi Stock Market (2024-2025)
The Saudi stock market witnessed significant developments during 2024 and 2025 that impacted the TASI index. Notable among these were changes in foreign investment policies, allowing foreign ownership up to 100% in certain companies, leading to increased foreign liquidity in the market. Additionally, high oil prices bolstered the profits of energy companies and positively influenced the index. Quarterly financial reports from major companies showed strong results, especially for Aramco and banks, enhancing investor confidence. New companies were listed in the healthcare and technology sectors, increasing market diversity. Global economic events, such as interest rate hikes in the U.S. and Europe, affected capital flows to emerging markets, reflecting on the index's performance during certain periods. Finally, Vision 2030 projects and the expansion of foreign investment contributed to enhancing the Saudi market's position as a regional investment destination.
How to Track TASI Index and Reliable Data Sources
The Tadawul TASI index can be easily tracked through several official and reliable sources. The official website of the Saudi Stock Exchange (Tadawul) provides real-time data on the index and all its constituent companies. The Capital Market Authority (CMA) publishes detailed quarterly and annual reports about the market. Financial news websites such as Argaam offer daily analyses and news about the index and listed companies. Additionally, global news agencies (Reuters, Bloomberg) provide real-time coverage of the index, and it can be monitored through financial smartphone applications or electronic trading platforms. It is always advisable to rely on official sources when tracking the index or to base decisions on specialized analytical data when making any financial decision.
Importance of TASI Index in Financial Analysis and Investment Portfolios
The Tadawul TASI index is a fundamental tool in financial analysis for investors and financial institutions. Through it, the overall performance of the Saudi economy can be assessed, and the success of investment portfolios or funds can be measured against the index (Benchmarking). Regular tracking of TASI provides signals about liquidity trends and investor confidence levels, aiding in making decisions based on a comprehensive market analysis. For investors who prefer diversification, investing in exchange-traded funds linked to TASI allows them to gain exposure to the entire market and reduce the risks associated with focusing on a single stock. Additionally, index data is used in economic studies and future forecasts about the Saudi market and national economy.
Difference Between Investing in TASI and Individual Stocks
Investing in the Tadawul TASI, whether through index funds or balanced portfolios, provides investors with comprehensive diversification across the entire Saudi market. This reduces the risks of the portfolio being exposed to fluctuations in a specific stock or sector. In contrast, investing in an individual stock may offer the opportunity for higher returns if the stock selection is successful, but it also carries higher risks if the company faces financial or regulatory issues. Beginner investors often prefer to monitor the index to understand the overall market trend before delving into individual stock selection. Additionally, some professional investors rely on market indices to compare their portfolio performance and adjust their investment strategies according to changes in the index.
Role of the Capital Market Authority and Tadawul in Managing the Index
The Capital Market Authority (CMA) and the Saudi Stock Exchange (Tadawul) play a crucial role in managing the TASI index. Tadawul is responsible for the index's computational operations and periodically updating its components according to established rules. The CMA oversees the market's and listed companies' compliance with regulatory standards and transparency, issuing guidelines for disclosure practices and investor protection. Any changes in the market structure, such as the listing of a new company or the delisting of a company, are directly applied to the index. The relative weights of companies are also updated according to changes in capital and distributions. This system ensures the fairness and efficiency of the index as a measure of the overall market performance.
Future of TASI Index Under Saudi Vision 2030
With the implementation of Vision 2030 projects, the Tadawul TASI index is expected to witness further sectoral diversification and an increase in listings in new sectors such as technology, tourism, and entertainment. The Saudi government aims to reduce dependence on oil by enhancing the role of the private sector and encouraging foreign direct investment. This is expected to lead to an increase in the number of companies listed in the market, enhancing the attractiveness of the Saudi market for global investors, and reflecting on the index in terms of stability and growth. At the same time, TASI will remain sensitive to fluctuations in oil prices and global monetary policies, but the market's evolution and the structure of the economy will strengthen its resilience and ability to absorb external shocks in the future.
Conclusion
The Tadawul TASI index represents a comprehensive mirror of the Saudi economy and a key tool for assessing the performance of the local stock market. With its coverage of all sectors and listed companies, the index provides an accurate picture of capital movements and investor trends. The performance in 2024-2025 experienced fluctuations due to global and local factors, but the index maintained its position as a fundamental reference tool for individual and institutional investors. When monitoring the index or analyzing its data, it is essential to rely on official and trustworthy sources such as the Tadawul website and the Capital Market Authority. It is also always recommended to consult a licensed financial advisor before making any investment decisions or asset allocations, to ensure that strategies align with personal goals and financial situations. The SIGMIX platform provides advanced analytical tools and updated reports to help you understand financial indicators and trends in the Saudi market professionally, supporting data-driven and unbiased decision-making.
Frequently Asked Questions
The Tadawul TASI index is the comprehensive index for all companies listed in the Saudi stock market (Tadawul). The index is calculated based on the free float market capitalization of each company (share price × number of shares available for trading), aggregating this for all listed companies. The result is divided by a reference value established at the index's inception to ensure continuity of comparison over time. This system gives greater weight to larger companies by market capitalization, making their movements more influential on the overall index.
As of the end of 2024, the Tadawul TASI index includes approximately 210 listed companies from various economic sectors, distributed across 21 key sectors. This number is updated periodically with the listing of new companies or the delisting of non-compliant companies from the market. These companies cover a wide range of sectors, providing the index with high comprehensiveness and making it an accurate reflection of the state of the Saudi market.
The TASI index ended 2024 at 12,226 points, achieving a slight increase of 0.6% compared to 2023. In the first quarter of 2025, the index declined to 12,037 points and remained stable during the second quarter at 12,025 points, before dropping to 11,164 points at the end of the third quarter of 2025. These movements reflect fluctuations resulting from local and global economic factors such as oil prices and changes in monetary policies.
The sectors with the most impact on the TASI index are energy (especially Saudi Aramco and SABIC), the financial sector (banks and insurance), and telecommunications. The energy and basic materials sectors account for about 40-45% of the index's relative weight, while the financial sector contributes 20-25%. This distribution makes the index's performance closely linked to movements in oil prices and the results of major companies in these sectors.
Yes, since 2022, foreign investors have been allowed to invest directly in stocks listed in the Saudi market, and thus indirectly in the TASI index. The foreign ownership limit has been gradually raised, with expectations to allow ownership up to 100% in some companies by 2025. This openness enhances market liquidity and increases the attractiveness of investing in the Saudi market.
There is no specific dividend yield for the index itself, but the average dividend yield is estimated based on the dividends of the major companies comprising the index. This rate often ranges between 3-5% annually in stable sectors such as energy and banking. The average dividend yield of the index can be considered around 3.5%, varying according to the performance of companies and general market conditions.
You can track the TASI index through several official sources such as the website of the Saudi Stock Exchange (Tadawul), reports from the Capital Market Authority, and financial analysis websites like Argaam. Global news agencies and smartphone applications also provide real-time data for the index. It is always advisable to rely on official sources to ensure data accuracy.
Investing in TASI (through index funds or balanced portfolios) provides comprehensive diversification across all sectors of the Saudi economy, reducing the risks of fluctuations in a specific stock or sector. In contrast, investing in an individual stock may yield higher returns if the stock is successful, but it also carries greater risks if the company faces financial or regulatory issues. Therefore, investing in the index is a suitable option for those looking to minimize risks and diversify their investment portfolio.
The major companies influencing the TASI index include: Saudi Aramco (Energy sector), SABIC (Petrochemicals), Al Rajhi Bank, National Commercial Bank, and Saudi Telecom Company STC. These companies constitute the largest proportion of the index's weight, and any changes in their financial results or stock prices directly reflect on the overall movement of the index.
The components of the TASI index are updated immediately with each listing or delisting of a company from the main market. The relative weights of companies are also adjusted during capital changes or rights distributions. There is no fixed periodic review since the index includes all listed companies and reflects the market structure at every trading moment.
Since the energy and petrochemicals sectors constitute a significant portion of the TASI index's weight, any rise or fall in oil prices directly reflects on the profits of major companies like Aramco and SABIC, and thus on the index as a whole. Rising oil prices typically support the index, while falling prices may lead to a decline, especially if accompanied by a drop in the results of heavyweight companies.
Given the potential volatility in financial markets and the multitude of factors influencing indices and stocks, it is always important to consult a licensed financial advisor before making any investment decision. The advisor helps assess risks, define investment goals, and choose appropriate financial instruments for the financial situation and personal objectives, especially in a changing market like the Saudi market.