TASI posts steepest annual decline in a decade; only 26 stocks rise

A trader watches the Tadawul trading screen.

The Saudi Tadawul All-Share Index (TASI) recorded losses of around 1,546 points, or 12.8% in 2025, closing at 10,491 points, compared with 12,037 points at the end of 2024.

As a result, the benchmark posted its lowest annual close in three years since 2022, when it closed at 10,478 points.

The annual loss represents the largest percentage decline since 2015, when the index fell by 17%, and the highest point drop since 2008.

Q4 2025 recorded the steepest drop last year, with the index dropping by more than 1,000 points, or 8.8%, followed by Q2 2025, which declined by about 861 points, or 7.2%. Q1 2025 recorded a slight decline of around 11 points, while the index rose by about 339 points, or 3%, in Q3 2025.

Several events affected market performance in 2025, most notably the following:

The trade war following the United States’ decision to impose tariffs on several countries, led by China and Europe, after Donald Trump was inaugurated for a second term as President.

Oil prices showed significant volatility in 2025, with Brent crude trading between $58 and $82.60 per barrel.

Aggregate profits of Saudi-listed companies declined by 5% during the first nine months of 2025 to SAR 404.0 billion, compared with SAR 426.4 billion in the same period of the previous year. Excluding Saudi Aramco, aggregate profits rose by 5% to SAR 125.5 billion in the nine months, compared with SAR 119.3 billion during the same period of 2024.

The US Federal Reserve cut interest rates three times in 2025, and the Saudi Central Bank followed suit. The Federal Reserve also projected one interest rate cut during 2026.

In 2025, 15 companies were listed and began trading on the Main Market (TASI), with varying subscription coverage. The year also saw two IPOs that were not fully covered by individual investors.

In the final sessions of Q3 2025, the market recorded gains of nearly 630 points after Bloomberg reported comments from a Capital Market Authority (CMA) board member indicating that the authority was close to approving a major amendment to raise the foreign ownership cap for listed companies, currently set at 49%.

The CMA subsequently launched a consultation on opening the Main Market to all categories of non-resident foreign investors and enabling them to invest directly, inviting feedback from interested stakeholders and market participants.

CMA Chairman Mohammed Elkuwaiz stated that abolishing the qualified foreign investor (QFI) system would precede any amendment to the 49% foreign ownership limit, noting that these limits would be reviewed during the coming year.

A number of decisions and regulations affecting the Saudi real estate sector were issued, including the implementation of the new White Land Tax Law, a five-year freeze on residential and commercial rent increases in Riyadh, and the updated framework governing non-Saudi ownership of real estate.

The Saudi Cabinet approved total government expenditures of SAR 1.31 trillion for 2026, while total revenues were estimated at SAR 1.15 trillion, resulting in an expected budget deficit of SAR 165.4 billion.

Monthly performance:

TASI recorded a decline in eight months, with November topping with a drop of 1,065 points, or 9.1%, followed by May falling 682 points, or 5.8%.

By contrast, the market index rose in four months, led by September with a gain of 7.5%, or 806 points.