Prime Highlights
- Saudi Arabia’s stock market surged 8.5% in January, driven by strong Q4 2025 earnings expectations, positive non-oil growth outlooks, and regulatory reforms attracting foreign investors.
- Investor sentiment strengthened after the Capital Market Authority announced the market would open to all foreign investors starting February 1, removing previous restrictions.
Key Facts
- Tadawul All Share Index closed January at 11,382.08 points, with top performers including Almasane Alkobra Mining (+32.7%), Saudi Arabian Mining (+26.8%), and Tourism Enterprise (+23.4%).
- Trading volumes in Saudi Arabia rose 43.3% month-on-month to 4.9 billion shares, with the total value of trades increasing 36.2% to SR99.9 billion.
Background
Saudi Arabia led equity market gains across the Gulf in January, as regional markets outperformed most global benchmarks on the back of strong earnings expectations and positive non-oil growth outlooks, according to an analysis by Kamco Invest.
The Saudi stock exchange posted a monthly gain of 8.5%, marking its biggest rise in nearly five years. The Tadawul All Share Index closed the month at 11,382.08 points, its strongest monthly performance since February 2022. Kamco Invest said the rally was driven by optimism around fourth-quarter 2025 earnings, improving economic growth outside the oil sector, and regulatory changes aimed at attracting foreign investors.
Investor sentiment also improved after Saudi Arabia’s Capital Market Authority announced that the stock market would open to all categories of foreign investors from February 1. The move allows direct access to the main market and removes earlier restrictions, including the Qualified Foreign Investor framework and swap agreements.
In Saudi Arabia, Almasane Alkobra Mining Co. led the market, posting a 32.7% increase in its stock price over the month. Saudi Arabian Mining Co. and Tourism Enterprise Co. followed with gains of 26.8% and 23.4%, respectively. Trading activity also increased sharply, with volumes rising 43.3% month on month to 4.9 billion shares. The total value of trades climbed 36.2% to SR99.9 billion.
Elsewhere in the Gulf, Oman’s equity market gained 7.9%, while Dubai rose 6.4%. Kuwait recorded the largest decline at 3.8%, and Bahrain edged down 1.1%.
In January, the MSCI GCC index climbed 7.8%, recording one of its most impressive monthly performances in close to six years. Globally, emerging markets outperformed developed economies, supported by strong buying in technology stocks.
