The Saudi Tadawul All Share Index (TASI) is expected to surpass 10 trillion riyals after Eid
Investors and financial analysts, both locally and internationally, are focused on the Saudi stock market, which resumes trading tomorrow, Sunday, following the Eid al-Adha holiday. This resumption comes amidst intense anticipation regarding the performance of the Tadawul All Share Index (TASI) and whether it will achieve a historic milestone by surpassing the 10 trillion Saudi riyal mark in total market capitalization.
The Tadawul All Share Index (TASI) ended its last trading session before the holiday with a positive performance, closing at 11,028 points, a gain of 42 points, or 0.38%. The final session witnessed significant momentum, with 173 companies' shares rising compared to 85 companies' shares declining. Trading volume reached approximately SAR 11.08 billion, with 372.87 million shares traded, reflecting investor confidence before the holiday break.
Historical background and importance of the Saudi market
The Saudi Stock Exchange (Tadawul) is the largest and most liquid stock market in the Middle East and North Africa region and a cornerstone of the Saudi economy. Over the past few years, the market has undergone tremendous structural and regulatory developments in line with the goals of Saudi Vision 2030, which aims to diversify the economy and reduce dependence on oil. These reforms, which included facilitating access for foreign investors and developing market infrastructure, have led to the inclusion of the Saudi market in leading global indices such as MSCI Emerging Markets and FTSE Russell, enhancing its standing on the international financial stage and attracting significant foreign investment inflows.
Signs of exceeding the 10 trillion riyal mark
According to recent data, the total market capitalization of companies listed on the Saudi Stock Exchange (Tadawul) reached approximately SAR 9.92 trillion, meaning the market needs gains of just SAR 77.36 billion to reach this historic milestone. Surpassing the SAR 10 trillion mark is not merely a number; it carries profound economic and investment implications. It reflects the robust growth of major Saudi companies and reinforces investor confidence in the strength of the national economy and its ability to achieve the goals of Vision 2030. This achievement will also enhance the market's attractiveness to major global investment portfolios, potentially leading to increased liquidity and improved pricing efficiency.
Expected impact at the regional and international levels
Regionally, this growth solidifies Riyadh's position as a dominant financial capital in the region, capable of attracting major initial public offerings (IPOs) and significant capital inflows. Internationally, Tadawul's reaching this size places it among the world's major markets and increases its weight in international indices, compelling global investment fund managers to increase their allocations to the Saudi market. It is worth noting that the value of foreign investors' holdings in the market has reached approximately SAR 452.18 billion, representing 4.56% of the total market capitalization, a figure expected to rise with the continuation of economic reforms and increased transparency in the financial market.
