تداول
TASI
TypeStock exchange
LocationRiyadh, Saudi Arabia Saudi Arabia
Coordinates24°41′12.89″N 46°41′7.70″E / 24.6869139°N 46.6854722°E / 24.6869139; 46.6854722
FoundedMarch 19, 2007 (2007-03-19)
Key peopleSarah Al-Suhaimi (Chairwoman)
Khalid Abdullah Al Hussan (CEO)
CurrencySAR
No. of listings202
Market capSAR 8.23 trillion (US$ 2.22 trillion) (July 01, 2020)[1]
VolumeSAR 380.89 billion (US$ 102.84 billion) (July 01, 2020)
IndicesTadawul All Share (TASI)
Websitewww.tadawul.com.sa

Saudi Stock Exchange (Arabic: السوق المالية السعودية‎) or Tadāwul (Arabic: تداول‎) is a stock exchange in Saudi Arabia. Tadawul was formed in 2007 as a joint stock company and the sole entity authorized to act as a securities exchange in Saudi Arabia, but trading began in 1954 as an informal financial market. It continued as such with only 14 listed companies through the 1970s and began to acquire some formal status as the Saudi Company for Share Registration in 1980. The Saudi Company for Share Registration was officially established after being regulated by a Special Ministerial Committee. It is regulated by the Capital Market Authority but has become partially self-regulating organization since 2018. It lists 203 publicly traded companies (as of December 31, 2020). As of December 31, 2020, its trading hours are 10:00AM to 3:10PM, Sunday to Thursday.[2][3] Tadawul is considered the largest capital market in the Middle East and North Africa.[4] As of December 2019, Tadawul is considered the world's ninth-biggest stock market.[5]

On 26 February 2017, The Saudi Parallel Market (Nomu) was launched as a parallel equity market with lighter listing requirements to provide companies an alternative platform for the public listing.[6][7]

The Tadawul All-Share Index (TASI) reached its highest point at 20,634.86 on 25 February 2006.

Tadawul is an affiliate member of the International Organization of Securities Commissions (IOSCO), the World Federation of Exchanges (WFE), the Arab Federation of Exchanges (AFE), and is also a member of the United Nations' Sustainable Stock Exchanges (SSE) initiative. The share capital of Tadawul is SAR 1.2 Bn divided into 120 million shares of equal value of SAR 10.

Tadawul is completely owned by the Saudi Public Investment Fund. Tadawul completely owns Muqassa & Edaa but only owns 20% of the Tadawul Real Estate Company.

Trading Times

Trading days are 5 (Sunday, Monday, Tuesday, Wednesday,& Thursday.) With 1 trading session per trading day. The following table shows the trading times for each market on tadawul (Based on Saudi time [UTC+3]). Trading closes on official Saudi holidays (Saudi National day, Eid Al Adha,& Eid Al Fitr)

Market Start Time End Time
Trading in Equites 10:00 AM 3:00 PM
Trading in ETFs 10:00 AM 3:00 PM
Trading in Sukuk & Bonds 10:00 AM 3:00 PM

Annual Returns

The following table shows the annual development of the Tadawul All-Share Index since 2001.[8]

Year Closing level Change in Index
in Points
Change in Index
in %
2001 2,430.11
2002 2,518.08 87.97 3.62
2003 4,437.58 1,919.50 76.23
2004 8,206.23 3,768.65 84.93
2005 16,712.64 8,506.41 103.66
2006 7,933.29 −8,779.35 −52.53
2007 11,175.96 3,242.67 40.87
2008 4,802.99 −6,372.97 −57.02
2009 6,121.76 1,318.77 27.46
2010 6,620.75 498.99 8.15
2011 6,418.13 −202.62 −3.06
2012 6,801.22 383.09 5.97
2013 8,536.60 1,734.38 25.50
2014 8,333.30 −202.30 −2.37
2015 6,911.76 −1,421.54 −17.06
2016 7,210.43 298.67 4.32
2017 7,226.32 15.89 0.22
2018 7,826.73 600.41 8.31
2019 8,389.23 562.50 7.19
2020 8,689.53 300.30 3.58

Saudi Stock Market Crash of 2006

Also known as the "Black February", the Saudi stock market collapsed in 2006, and the number of listed companies was 76, causing a loss of one trillion Saudi riyals, which led to the bankruptcy of many middle-income traders. Some of them sold their cars or invested their life savings on the market. [9]

The second day of the crash on Sunday February 26, 2006 witnessed a wave of collective selling in the first minute of trading, which caused an increase in panic and contact with more than 60 companies with the lowest rate, and the closure of all market companies on a sharp decline, as the sale of 1.5 million shares was executed in the first minute of trading, especially after the Kingdom’s Capital Market Authority (CMA) decided to reduce the volatility to 5% and implement it with the start of trading on Saturday, February 25 of the year 2006. The general index lost on the second day of the collapse nearly 980 points, equivalent to 4.75% of the total market, and the shares lost approximately 144.5 billion riyals out of its market value, the doors of hope for the return or stability of the market at reasonable levels of correction are closed.

National economic catastrophe that affected citizens, revealed the low level of economic management that did not succeed in reading the market crisis before it occurred, and was not given enough importance, then it was unable to manage and deal with it in an optimal manner, which helped in the occurrence of the major economic disaster in the country's history. Some attributed the cause of the collapse to many things, including stopping a number of speculators and the fear of others of similar sanctions, and to the decision to determine the percentage of fluctuation and the abolition of fractures, and prevent the return of speculators ’commissions, which seem weak compared to the main collapse of the price inflation that the regulatory authorities contributed to.

This necessitated King Abdullah's personal intervention to resolve the crisis, where he ordered the division of shares and the permitting of non-Saudi residents to invest directly in the stock market and not limiting it to investment funds and reducing the nominal value of the share, which were issued by decisions of the CMA and was applied. [10]

2019

2019 was a year where many milestones of Tadawul were achieved including successfully hosting the listing of Saudi Aramco (world's largest initial public offering), MIS, Maharah, Arabian Centers, Ataa Educational,& Shuaa REIT; completing inclusion in the MSCI and S&P Emerging Market Indices and FTSE Russell inclusion to be completed during the course of the first half of 2020; introducing direct listings onto the Nomu parallel market, together with the easing transition requirements for companies moving from Nomu to the Main Market.

Furthermore, during the year Tadawul revamped the fee structure for Sukuk’s and Bonds which resulted in a dramatic increase in the number and value of debt instruments traded and successfully delivered IT enhancements, including bringing the counterparty clearing house Muqassa on stream without disruption and on-time and undertaking preparations to allow Muqassa to commence operations during 2020. Tadawul also permitted foreign companies to list on the Saudi Exchange.

The total number of listed companies at the end of 2019 was 199, this shows a 20% growth over a 5-year period.

Sarah Al-Suhaimi, Chairperson, Tadawul commented: “2019 was an exceptional year for Tadawul during which we delivered significant enhancements and successfully hosted the listing of Saudi Aramco which saw us enter the ranks of the world’s leading exchanges. Our accomplishments give us much to build on and we look forward to a great future for the Exchange.”

See also

References

  1. ^ "Monthly Report". www.tadawul.com.sa. Retrieved 2020-07-26.
  2. ^ "Saudi Stock Exchange (Tadawul)".
  3. ^ "Saudi Stock Exchange (Tadawul) - Navigation Root".
  4. ^ "Why Saudi Arabia". Invest Saudi. Retrieved 2019-02-17.
  5. ^ "Aramco surges in debut trading to make Saudi exchange world's ninth biggest". The Business Times. 2019-12-12. Retrieved 2019-12-14.
  6. ^ "Al Rajhi Capital | NOMU - Parallel Market". www.alrajhi-capital.com. Retrieved 2019-09-05.
  7. ^ "Factfile: What is the Saudi Nomu-Parallel Market?". english.alarabiya.net. Retrieved 2019-09-05.
  8. ^ "Tadawul All Share Index (Saudi Arabia) Yearly Stock Returns". www.1stock1.com. Retrieved 2020-01-20.
  9. ^ "Saudi Arabia's stock collapse - December 11, 2006". archive.fortune.com. Retrieved 2020-07-25.
  10. ^ "Al-Jazirah". www.al-jazirah.com. Retrieved 2020-07-25.