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.

Sector Performance:

All sectors declined in 2025, except for telecommunications and information technology, which saw an increase of over 11% year-on-year (YoY).

The media and entertainment sector reported the largest decline at 49%, followed by utilities at 47%, consumer durables at 35%, and basic materials at 11%.

The banking sector saw the smallest decline at 0.1%, followed by the luxury goods retail and distribution sector at 1%.

Index Performance

TASI notched its highest level in 2025 at 12,536 points on Jan. 29, 2025, and the highest close on Feb. 10 at 12,472. It fell to its lowest levels of 10,339 points and sank to an all-year low, closing at 10,382 on Dec. 30, 2025.

The benchmark's highest daily trading value was recorded on Sept. 18, 2025, at SAR 16.4 billion.

The lowest daily trading value was witnessed on Dec. 25, 2025, at SAR 1.66 billion.

Trading Sessions with Biggest Gains and Losses

The market index headed south in 135 out of 251 sessions last year. April 6 saw the biggest loss as TASI declined 206 points or 1.8%. In Q4 2025, the steepest decline was witnessed on Nov. 25 at 1.5%.

The market gauge headed north in 112 sessions during 2025. The biggest rise was recorded at 5.1% on Sept. 24, followed by +3.7% on April 10.

TASI’s Biggest Gains in 2025

Trading Activity in 2025

Traded value in the Saudi stock market fell 30% in 2025 to SAR 1.30 trillion, compared with SAR 1.86 trillion in 2024, according to market data.

January recorded the highest traded value at SAR 140.94 billion, while December was the lowest at around SAR 76 billion.

Executed Transactions in 2025

The number of executed transactions declined 7% YoY to 119.03 million in 2025.

April recorded the highest number of trades at 12.05 million.

Stock Performance

On the stock performance front, losers outnumbered gainers by 205 to 26.

Naseej International Trading Co. was the biggest loser, declining by 64%, followed by Gulf General Cooperative Insurance Co. (62%) and Methanol Chemicals Co. (Chemanol) (60%).

Shares of The Mediterranean and Gulf Insurance and Reinsurance Co. (MEDGULF), Saudi Research and Media Group (SRMG), Saudi Public Transport Co. (SAPTCO) and Middle East Healthcare Co. (Saudi German Health) declined between 53% and 56%.

Top Gainers

Al-Babtain Power and Telecommunication Co. (Al-Babtain) topped gainers, soaring 65%, followed by Electrical Industries Co. (55%), and Abdullah Saad Mohammed Abo Moati for Bookstores Co. (Abo Moati) (48%).

Seera Group Holding Co., Saudi Arabian Mining Co. (Maaden), National Shipping Company of Saudi Arabia (Bahri), and Fawaz Abdulaziz Alhokair Co. (Cenomi Retail) also rose by between 19% and 45%, as shown below:

Performance of Blue Chips

Blue chips showed mixed performance in 2025, as Saudi Arabian Oil Co. (Saudi Aramco) dropped by 15% YoY. ACWA Power Co. topped the list of decliners with a 54% YoY fall. Saudi Basic Industries Corporation (SABIC) fell by 23% YoY.

Meanwhile, Al Rajhi Bank and Saudi National Bank (SNB) increased by 3% and 13% YoY, respectively. Etihad Etisalat Co. (Mobily) led the gainers with an annual rise of 24%.

Performance of Listed Companies

In 2025, 15 companies were listed on the Saudi market, all of which recorded declines compared to their possible trading prices, except for Al Masar Al Shamil Education Co. and Almoosa Health Co., which rose by 21% and 15%, respectively.

Nice One Beauty Digital Marketing Co. (Nice) topped the list of newly listed companies with the steepest declines in 2025, falling by 57%, followed by United Carton Industries Co. (UCIC), which declined by 50%.

**Change compared to the permissible trading price.

Performance of REITs

Units of 17 REITs recorded declines during 2025, led by Riyad REIT Fund with a 27% YoY drop, followed by AlJazira REIT with a 23% annual decline.

Meanwhile, two REITs posted gains. Jadwa REIT Saudi Fund rose 11% YoY, while Al Aziziah REIT Fund increased by 2% YoY.

Performance of Closed-Ended Investment Funds

All listed closed-ended investment funds recorded gains in 2025, except for Alkhabeer Growth & Income Traded Fund, which declined by 18% YoY.