Saudi Arabia’s stock exchange closed the first quarter of 2026 on a note of measured confidence, with the Tadawul All Share Index posting a 6.45 percent year-to-date gain to reach 11,167 points at the end of March — before continuing its advance into April. The quarter also saw robust institutional activity, as the exchange recorded 721 negotiated deals with a combined value of SAR 8.9 billion, underscoring the depth of investor engagement in the Saudi market heading into the second quarter.
A Quarter Defined by Institutional Confidence
Negotiated deals — large block transactions executed between institutional counterparties outside the regular order book — reached 721 completed deals in Q1 2026, totaling SAR 8.9 billion in value. These transactions are a key indicator of institutional-grade market activity, reflecting the appetite of major funds, strategic investors, and corporate entities for significant positions in listed Saudi companies. The level of negotiated deal flow recorded in the quarter signals continued confidence from the institutional investment community in the Kingdom’s equity market.
The broader TASI also built momentum through the period. Following a close of 11,167 points at the end of March, the index climbed a further 0.23 percent to 11,276 points on April 1, with daily trading value reaching SAR 6.5 billion. The market’s year-to-date performance of over 7 percent through early April positions it among the stronger-performing emerging market indices in the region for the period, driven by gains in banking, healthcare, and consumer sectors.
Sector Drivers and Market Depth
Saudi Arabia’s banking sector has been a consistent contributor to TASI performance, supported by elevated net interest margins and strong loan book growth tied to Vision 2030 project financing. Healthcare stocks have tracked upward on rising private-sector medical spending and capacity expansion across the Kingdom’s hospital network. Consumer names have benefited from steady domestic demand and the continued expansion of Saudi Arabia’s entertainment, hospitality, and retail industries as the non-oil economy broadens its base.
The Tadawul’s liquidity profile continues to improve, with daily turnover regularly exceeding SAR 6 billion — a level that reflects both domestic retail participation and growing international investor access through Saudi Arabia’s inclusion in major global indices. With a market capitalization of approximately SAR 3.2 trillion and a calendar of IPOs and listings filling through 2026, the Saudi Exchange remains one of the most active and closely watched capital markets in the emerging world.
Outlook for Q2 2026
First-quarter earnings reporting season is set to begin in the coming weeks, with analysts forecasting continued earnings growth across key sectors. The Capital Market Authority’s active IPO pipeline — including recently approved offerings such as FMCO — is expected to provide further investor opportunities, while ongoing PIF-linked project disclosures and continued government spending will sustain the newsflow underpinning market sentiment heading into the second half of the year.
