Saudi stock market

The Saudi stock market is centred on Tadawul, the only sock exchange in Saudi Arabia. Prior to the establishment of Tadawul, the Saudi stock market used the Saudi Arabia Electronic Securities Information System (ESIS). The Electronic Securities Information System was introduced in 1990 and run by the Saudi Arabian Monetary Agency (SAMA).

Tadawul has now grown into the 11th largest stock exchange in the world and the Tadawul All-Share Index (TASI) reached 20,634.86 on 25 February 2006. Tadawul currently lists almost 100 publicly traded companies and is supervised by the Capital Market Authority.

Tadawul has an order driven market for the trading, clearing and settlement of shares on the Saudi stock market. Through Tadawul, you can get up to the minute price, volume and company information dissemination. The creation Tadawul has focused local equity trading to one single market, thereby facilitating efficient and short trading cycles on the Saudi stock market. This is a modern stock exchange were transfer of ownership is carried out as soon as a buy and sell order has been matched, and investors are naturally allowed to buy and sell numerous times during the opening hours. By trading via Tadawul, investors ensures that 100% of their trades will be settled on the day of execution.   

At Tadawul, orders can exit the market for one day, for the current week, for the current month, or up to 30 days. (Commonly referred to as good-till-day, good-till-week, good-till-month, and good-till-date.) It is also possible for the participants on the Saudi stock market to use so called Fill or Kill orders; orders which must be filled in entirely or partially as soon as they enter the Saudi stock market. In cases where instant trade is not possible, such an order till be cancelled (“killed”) automatically.

The aim of Tadawul is to create a quick, efficient and transparent Saudi sock market. Announcements and market prices are always instantaneously published to investors, banks and third party vendors, and issuers can enter financial information and announcements directly via the Internet. All such information can be obtained at the Tadawul website, which means that all participants on the Saudi stock market have equal access to the information. The electronic order routing from various bank branches also makes it possible to provide equal service to everyone regarding of geographical location, as well as maintaining trade execution priorities.

Saudi Arabia stock market info

These are the Yearly Closing Values for Tadawul since the beginning of 1994: 

January 26, 1994: 1,751.71
1994: 1,282.87
1995: 1,367.56
1996: 1,531.00
1997: 1,957.80
1998: 1,413.10
1999: 2,028.53
2000: 2,258.29
2001: 2,430.11
2002: 2,518.08
2003: 4,437.58
2004: 8,206.23
2005: 16,712.64
2006: 7,933.29

The Saudi stock market and the Capital Market Authority

The Capital Market Authority (CMA) is the organisation responsible for regulating Tadawul, the Saudi Arabian stock exchange. CMA was established by the Capital Market Law, issued by Royal Decree No. (M/30) dated 2/6/1424 H (16th June, 2003). It is a government organisation granted with financial, legal and administrative independence, and it reports directly to the Prime Minister of Saudi Arabia. The responsibility of the CMA is to regulate and develop the Saudi Arabian Capital Market, including the Saudi stock market. In order to form and maintain a good investment environment, the CMA regularly issues rules and regulations to ensure the provisions of the Capital Market Law are fully implemented.

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