Saudi Arabia’s benchmark equity index, the Tadawul All Share Index (TASI), closed the first quarter of 2026 on a firm note, gaining 6.45 percent year-to-date and ending March 31 at 11,167 points — a rise of 97 points, or 0.88 percent, in the final session of the quarter. The performance marks a meaningful recovery for the Kingdom’s capital markets and reflects sustained investor confidence in Saudi Arabia’s economic trajectory.
A Quarter Defined by Resilience
The first three months of 2026 saw the TASI navigate a global environment shaped by interest rate uncertainty and commodity price fluctuations. Despite these external pressures, Saudi Arabia’s financial markets demonstrated consistent strength. The index opened January close to 10,490 points and steadily climbed through the quarter, driven by robust corporate earnings, Saudi Aramco’s continued dividend distributions, and broad-based confidence in the Kingdom’s Vision 2030 reform agenda.
Banking and financial services were among the top-performing sectors. Al Rajhi Bank, the country’s largest lender by market capitalisation, maintained strong fundamentals and declared a dividend, while the sector overall benefited from elevated net interest margins. The healthcare and pharmaceutical space also registered notable gains, with SPIMACO posting a full-year 2025 profit of SAR 184 million and shares rising nearly six percent on the final day of the quarter.
Market Data and Foreign Investor Activity
As the quarter came to a close, daily trading volumes on the Tadawul exchange reached 298 million shares, with value traded exceeding SAR 6 billion in a single session. The overall market capitalisation of listed Saudi companies stood at approximately SAR 3.19 trillion, reflecting the depth and scale of the Kingdom’s equity markets relative to its regional peers.
Foreign investor ownership remained stable through the quarter, a signal that international capital continues to find Saudi Arabia an attractive destination. Tadawul also announced its Q1 2026 index maintenance results, which will take effect in the coming weeks and are expected to include adjustments to sector weightings in line with new listings and updated market performance data.
The Road Ahead for Q2 2026
As Saudi Arabia enters the second quarter of 2026, analysts and market observers remain broadly constructive. The conclusion of the FY 2025 earnings season, which wraps up today, leaves the market with a clearer picture of corporate health across all listed sectors. Saudi Aramco’s consistent dividend policy, the resilience of non-oil sectors, and continued government investment in infrastructure and mega-projects all point to an active market environment in the months ahead.
The TASI’s Q1 gain of 6.45 percent positions Saudi Arabia as one of the stronger-performing markets in the Gulf Cooperation Council region heading into the spring season, and the foundation laid by solid corporate results suggests momentum is likely to carry forward into Q2.
