Saudi Market Shows Stability in Q1 2025, Outlook Remains Positive

KSA, 1 May, 2025 : Saudi Arabia’s stock market remained stable in Q1 2025 despite global volatility, with the Tadawul All Share Index (TASI) closing nearly flat at -0.1%, according to Riyad Capital.

The outlook for the year is optimistic, driven by anticipated earnings growth, strong IPO activity, and solid non-oil sector performance. Sectors like telecom, banking, healthcare, and tech are expected to lead the recovery, supported by potential interest rate cuts in the second half of 2025.

Though market turnover fell 34% year-on-year, valuations remain attractive with TASI trading at a 39% discount to its five-year P/E average. Three main market IPOs raised nearly SR4 billion, while six companies listed on the Nomu market. Large-cap stocks outperformed, and media, utilities, and telecom sectors led gains.

Saudi Arabia's weight in the MSCI Emerging Markets Index rose to 4.2%, reflecting growing investor interest. GDP growth is forecast above 3%, with non-oil sectors expanding over 4% and inflation contained at 2.5%. Despite weak crude prices and global trade tensions, the Kingdom’s long-term market outlook remains strong.