Saudi Arabia’s stock market closed lower as a broad sell-off weighed on major sectors, pushing the Tadawul All Share Index down one point seven five per cent by the end of trading.

The decline marked one of the sharpest single-day falls of the year, reflecting cautious investor sentiment amid regional and global market pressures.

Losses were led by heavyweight banking and energy stocks, which exerted significant downward pressure on the index due to their large market capitalisation.

Several leading lenders posted notable declines, while shares of major petrochemical and energy firms also moved lower as oil prices softened and investors reassessed near-term earnings prospects.

Market participants cited a combination of profit-taking, external market volatility and uncertainty around global monetary policy as key drivers of the downturn.

Concerns over slowing global growth and fluctuating energy demand added to the cautious mood, prompting investors to reduce exposure to risk assets across the region.

Despite the day’s losses, analysts noted that the Saudi market remains supported by strong fundamentals, including solid corporate balance sheets, ongoing economic diversification and continued government investment under Vision two thousand thirty.

Trading volumes remained relatively active, suggesting that investors are repositioning rather than exiting the market entirely.

The Tadawul’s performance comes amid mixed trading across Gulf markets, with investors closely monitoring developments in global equity markets, oil prices and upcoming economic data that could influence sentiment in the days ahead.