|Saudi Stock Exchange(Tadawul)|
|Location||Riyadh, Saudi Arabia|
|Founded||March 19, 2007|
|Key people||Taha A. Al-Kuwaiz (Chairman)
Mansour Al-Maiman (Vice chairman)
|No. of listings||156|
Saudi Stock Exchange (Arabic: السوق المالية السعودية) or Tadawul (Arabic: تداول) is the only stock exchange in Saudi Arabia. The Saudi Arabia stock exchange is one of the most profitable and isolated stock markets around the world. For 37 years Tadawul was closed to other nations and foreign investors. Through their strict religion and regulation they “tend to focus on their domestic market” (Samba, 2009, p3). Currently Tadawul represents $373 billion of market capitalisation and stands out as the largest market in the Gulf region (Saudi Stock Exchange, online). The Saudi stock market contains a list of 168 companies, which are classified into various sectors: Financial, Healthcare, Utilities, Customer Goods and Services, Oil and Gas, Basic Materials, Telecoms and Industrials.
This report will consider the history and trend of the Tadawul stock market. Paper will be divided into two main parts. First part will describe the history and the main characteristic of the Saudi market. Primary attention will be paid how the oil and religion influence on the developing country. Then, the essay will be focused on the stock trends between 2008 and 2013. It is supervised by the Capital Market Authority. The Tadawul All-Share Index (TASI) reached its highest point at 20,634.86 on 25 February 2006. It lists 156 publicly traded companies (as of September 2, 2012). Its trading hours are 11AM to 3:30PM, Sunday to Thursday.
- 1 History
- 2 Components
- 2.1 Banks & Financial Services
- 2.2 Petrochemical Industries
- 2.3 Cement
- 2.4 Retail
- 2.5 Energy & Utilities
- 2.6 Agriculture & Food Industries
- 2.7 Telecommunication & Information Technology
- 2.8 Insurance
- 2.9 Multi-Investment
- 2.10 Industrial Investment
- 2.11 Building & Construction
- 2.12 Real estate and property development
- 2.13 Transport
- 2.14 Media and Publishing
- 2.15 Hotel & Tourism
- 3 See also
- 4 References
- 5 External links
On January 26, 1994 the market value was 1,751.71. Below, Tadawul's Yearly Closing Values Since 1994. In 2013 TASI recorded sharp increase. From January to November stock market value went up from 6900 to 8300 points. This is a result of calm the global situation and increasing the trust for the Arab stock market. Saudi Arabia inflation rate registered stable decreasing during 2013. From 4.2 in February till 3 points in November, as a result of stability and increasing stock market value. Saudi Arabia currency remains stable during 2013. With slight movement creates a stability and encourages to investments. The numbers of traded companies increased accordingly to the previous year. According to the previous years, the most dynamic proved to remain insurance and cement sector. The reason of increase the demand and competition in these sectors. TASI stock market performance was significant during 2013. Arab market was growing faster than London stock exchange and on the similar level to New York Stock Exchange. It can be notice that August brought for TASI significant performance according to the major competition. Saudi Arabia is a specific country. By basing its economy mainly on one sector- petrochemical, distance future may take various directions. However, as can be seen from Graph. 2, TASI trend represent stable growth. From 2009 stock raised from 5400 points to 8300 points. Majority of analyst believes, that future will bring for Arab market $30 billion of inflows (Businessweek, 2013).
January 2013: Fiscal Cliff Deal in the US caused the positive growth during first days of 2013. TASI increased 2.81% according to December 2012.
February 2013: Dr. Abdulrahman bin Abdulaziz al-Tuwaijri was chosen to hold a President position at CMA (Capital Market Authority). Political situation has contributed to a stable situation on the TASI stock exchange.
March 2013: March was a profitable month for TASI market. A sharp increase (200 points) was a consequence of new law regulation for insurance firms, implemented by CMA. Moreover a positive influence has a banker’s prediction about opening Kingdom market from 2014.
April 2013: TASI stock registered a significant decrease. Failing oil prices and unstable situation on global market have strong affect on TASI. Drop was also a consequence of entered Aljaira Takaful Ta’awuni Conmapny’s on the Saudi stock market.
May 2013: Saudi Arabia shares increased after reducing the unemployment and improve the economic situation in the U.S.
June 2013: TASI reached 13 month high to then register heavily drop in two years. TASI led by events in Syria between 15th and 16 June decrease by 500 points.
July 2013: Market raise by 350 points, however the reason of the increasing seems unknown.
August 2013: August bring for the Arab stock exchanges sudden growth as well as a sudden decrease. TASI recorded sharp increase at the beginning of month, as a consequence of massive investing in companies directly connected with Ramadan. Moreover positive impact on stock market had Eid holidays and changing the CMA president. Dramatic decrease was a consequence of speculation regarding US military strike in Syria. During one day TASI collapse by 300 points.
September 2013: September was for TASI a month for strong responses to a situation in Syria. Dramatic decrease follow by significant increase seems as respond to US statements according to military entry into Syria.
October 2013: TASI resided sharply as a consequence of EID Holidays.
November 2013: Two new companies were approved for entry to TASI. Bawan Company, a Riyadh-based.
|End of year||Value|
Banks & Financial Services
- Al Rajhi Bank
- Al-Bilad Bank
- Alinma Bank
- Arab National Bank
- Bank AlJazira
- Banque Saudi Faransi
- Riyad Bank
- Samba Financial Group
- Saudi Investment Bank
- Saudi Hollandi Bank
- Sahara Petrochemical
- Akshay Bhatia Group
- Advanced Polypropylene Company (APPC)
- Saudi Kayan
- Petro Rabigh
- Basic Chemical Industries
- Pharmaceutical Solutions Industry
- Arab Cement
- Yamamah Cement
- Saudi Cement
- Qassim Cement
- Southern Cement
- Yanbu Cement
- Eastern Cement
- Tabuk Cement
Energy & Utilities
Agriculture & Food Industries
- Savola Group
- Food Products Co.
- Saudia Dairy & Foodstuff Co. (SADAFCO)
- Almarai (Al-Marai buys plain milk from Al-Matrood)
- Anaam Holdings
- Qassim Agriculture
- Hail Agriculture
- Nada Dairy
- Tabuk Agriculture
- Saudi Fisheries
- Eastern Agriculture
- Jouff Agriculture
- Bishah Agriculture
- Gizan Agriculture
Telecommunication & Information Technology
- Tawuniya (previously known as National Company for Cooperative Insurance)
- Malath Insurance
- Weqaya (Weqaya Takaful Insurance and Reinsurance Company)
- ALLIANZ SF
- Walaa Insurance
- Arabian Shield
- SABB Takaful
- Saudi Indian
- Gulf Union
- Trade Union
- Sagr Insurance
- Saudi Re
- BUPA Arabia
- Gulf General Cooperative Insurance Company (GGI)
- Saudi Advanced Industries Co. (SAIC)
- Al-Ahsa for Dev. Co.
- Assir Development
- Al-Baha Development
- Kingdom Holding Company
- Basic Chemical Industries Co
- Glass Co.
- Maaden (Saudi Arabian Mining Co.)
- Saudi Chemical
- Saudi Paper Manufacturing Co.
- Saudi Industrial Export Co.(SIEC)
Building & Construction
- Mohammad Al Mojil Group
- Saudi Cables Company
- Saudi Industrial
- AL Babtain
- Red Sea
- ULCC (Universe Links Contracting Corporation)
- United Wire Factories Co.
- Zamil Industrial Investment Co.
Real estate and property development
- Saudi Real Estate Company
- Taiba Investment and Real Estate Development Company
- Makkah Construction
- Arriyadh Development Co.
- Emaar The Economic City. (Emaar)
- Jabal Omar
- Dar Al-Arkan Real Estate
- National Shipping Company of Saudi Arabia
- Saudi Land Transport Co. (Mubarrad)
- Saudi Public Transport Company
- Budget Saudi
Media and Publishing
Hotel & Tourism
- Economy of Saudi Arabia
- List of Mideast stock exchanges
- List of Saudi Arabian companies
- List of stock exchanges
- Official website of the Capital Market Authority
- http://www.tadawul.com.sa: Tadawul official website
- Tadawul: Tadawul forums website
- Saudi Virtual Tadawul: Virtual Tadawul site that simulate Saudi Tadawul (the easy way to learn Saudi Stocks)