Saudi Banking Sector Leads Trading on Tadawul in Q4 2024
The banking sector accounted for 17% of market share in Q4, maintaining its dominance as Saudi Arabia’s key economic driver under Vision 2030.
Saudi Arabia’s banking sector was the dominant force on the Kingdom’s stock exchange (Tadawul) in the fourth quarter of 2024, leading with a 17% market share, according to the latest report from Tadawul.
The sector recorded approximately SR66.42 billion ($17.7 billion) in transactions, ahead of the materials and energy sectors, which accounted for SR45.04 billion and SR41.58 billion, respectively.
For the year 2024, the banking sector maintained its leadership with SR265.57 billion in trading volume, representing 14.26% of the total market value.
This performance reflects the ongoing economic transformation in Saudi Arabia as part of the Vision 2030 initiative, which focuses on diversifying the Kingdom’s economy and reducing its dependence on oil revenues.
The energy sector, led by Saudi Aramco, continues to dominate in market capitalization but is capped in weight within the index, according to Tadawul’s calculation methodology designed to prevent any single security from having an excessive impact.
Saudi Aramco recorded the highest trading value in Q4 at SR31.4 billion, with nearly half of its trades occurring in November during its profit and dividend announcement.
Other top performers included Al Rajhi Bank, with SR27.02 billion in trading volume, and Saudi Telecom (STC), which saw SR13.62 billion in transactions but experienced a decline in share price.
In the banking sector, the expansion of corporate lending and steady growth in residential mortgages have supported this performance, with banks playing a central role in financing Vision 2030 initiatives.
Foreign investment in Saudi Arabia’s stock market also increased, with foreign ownership rising to 4.11% in Q3 2024, as the Kingdom continues to attract foreign capital through reforms and strategic initiatives like the recent permission for foreign investment in real estate companies in Makkah and Medina.
The financial sector’s growth and the country’s continued diversification efforts are expected to maintain Saudi Arabia’s leadership within the GCC financial ecosystem.
The sector recorded approximately SR66.42 billion ($17.7 billion) in transactions, ahead of the materials and energy sectors, which accounted for SR45.04 billion and SR41.58 billion, respectively.
For the year 2024, the banking sector maintained its leadership with SR265.57 billion in trading volume, representing 14.26% of the total market value.
This performance reflects the ongoing economic transformation in Saudi Arabia as part of the Vision 2030 initiative, which focuses on diversifying the Kingdom’s economy and reducing its dependence on oil revenues.
The energy sector, led by Saudi Aramco, continues to dominate in market capitalization but is capped in weight within the index, according to Tadawul’s calculation methodology designed to prevent any single security from having an excessive impact.
Saudi Aramco recorded the highest trading value in Q4 at SR31.4 billion, with nearly half of its trades occurring in November during its profit and dividend announcement.
Other top performers included Al Rajhi Bank, with SR27.02 billion in trading volume, and Saudi Telecom (STC), which saw SR13.62 billion in transactions but experienced a decline in share price.
In the banking sector, the expansion of corporate lending and steady growth in residential mortgages have supported this performance, with banks playing a central role in financing Vision 2030 initiatives.
Foreign investment in Saudi Arabia’s stock market also increased, with foreign ownership rising to 4.11% in Q3 2024, as the Kingdom continues to attract foreign capital through reforms and strategic initiatives like the recent permission for foreign investment in real estate companies in Makkah and Medina.
The financial sector’s growth and the country’s continued diversification efforts are expected to maintain Saudi Arabia’s leadership within the GCC financial ecosystem.
