The Saudi stock market achieved exceptional performance at the start of the year, leading the gains among Gulf markets during January and recording its best monthly performance in five years. According to a report issued by Kamco Invest, the market's general index rose by 8.5%, outperforming most global indices, a clear indication of growing confidence in the Saudi economy and the strength of its non-oil sectors.
General context and economic background
This strong performance comes amidst the profound economic transformations underway in Saudi Arabia as part of Vision 2030. This ambitious vision aims to diversify the Kingdom's sources of income and reduce its reliance on oil by developing promising economic sectors such as mining, tourism, entertainment, and technology. The remarkable growth in these sectors is directly reflected in the performance of companies listed on the stock exchange, enhancing their attractiveness to both local and international investors. The record performance in January is not merely a temporary surge, but rather the result of ongoing structural and legislative reforms designed to enhance market transparency and efficiency.
Performance details and top companies
The volume and value of trading reflected the significant momentum the market experienced. Total trading volume reached 4.9 billion shares, a 43.3% increase compared to December. Trading value also rose to SAR 99.9 billion (USD 26.63 billion), registering a monthly growth of 36.2%. The top performing companies were those belonging to sectors targeted by Vision 2030, with the major mining company, AMAC, leading the way with a remarkable 32.7% increase, followed by the Saudi Arabian Mining Company (Ma'aden) at 26.8%, and the Tourism Projects Company (Shams) which achieved gains of 23.4%.
Importance and expected impact
Domestically, this performance boosts investor confidence and encourages increased liquidity in the market, while also supporting initial public offerings (IPOs) for both public and private companies. Regionally, the Saudi market's strength solidifies its position as a leading market in the Middle East and North Africa (MENA) region, positioning it as a catalyst for other Gulf markets. Internationally, this growth is attracting the attention of global investment fund managers, particularly following the inclusion of the Saudi market in emerging market indices such as MSCI and FTSE Russell, which facilitates the flow of foreign capital and supports long-term market stability. This performance demonstrates the Saudi economy's ability to attract investment and achieve sustainable growth, independent of oil price volatility.
