Research Reports

Saudi Arabia Capital Market Landscape

March 23 , 2022

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Executive Summary

Securities trading in Saudi Arabia began as early as 1954, with a mere 14 listed companies. This informal financial market evolved through 1970's and acquired formal status as the Saudi Company for Share Registration in 1980 which was established under the regulation of a Special Ministerial Committee. In the year 2007, the Tadawul stock exchange was established as the sole entity for securities exchange in Saudi Arabia. Capital Market Authority is responsible for the regulation of capital markets in Saudi Arabia.

Today the Saudi Arabian Capital Market is the largest in the GCC region. It constitutes about 77.1% of the market capitalization and about 73.5% of the value traded in the GCC region. Exchange traded instruments include - Equities (Main market & NOMU), Sukuk/Bonds, Exchange traded funds (ETFs), Real estate investment trusts (REITs), Closed ended funds (CEFs) and derivatives.

Key Discussion Points

  • Saudi Arabia equity market overview
  • Saudi sectoral indices and corporate earnings
  • Top Saudi stocks and their key metrics
  • Journey of Saudi Arabia from frontier market to an emerging market
  • Saudi Arabia's IPO boom to continue in 2022?
  • How does Saudi Arabia stack up against GCC peers?
  • Institutional investors in Saudi Arabia
  • Saudi Arabia based ETFs

Did you know?

  • There are currently 201 companies listed on Tadawul exchange and they command a market capitalization of (USD 2,666 bn) or about 319% of Saudi Arabia 2021 GDP.
  • Saudi Tadawul's Market capitalization is dominated by companies operating in the energy sector.
  • Saudi Arabia has been best performing GCC market in 2021, with the Tadawul Index gaining 29.8% in 2021.
  • For 2022, Saudi Arabia's stock exchange reportedly has more than 50 applications from companies for an IPO. Due to the high momentum in the IPO market, the Tadawul executives are deciding on allowing special purpose acquisition company (SPACs).


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