Banking and Energy Sectors Bolster Saudi Market, Index Poised for Further Gains

An investor stands in front of a screen displaying information from the Saudi Stock Exchange (Tadawul) in Riyadh (Reuters).
An investor stands in front of a screen displaying information from the Saudi Stock Exchange (Tadawul) in Riyadh (Reuters).
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Banking and Energy Sectors Bolster Saudi Market, Index Poised for Further Gains

An investor stands in front of a screen displaying information from the Saudi Stock Exchange (Tadawul) in Riyadh (Reuters).
An investor stands in front of a screen displaying information from the Saudi Stock Exchange (Tadawul) in Riyadh (Reuters).

Strong financial results and profits from the banking sector and energy companies have fueled significant gains in the Saudi stock market during recent trading sessions.

The market index closed on Wednesday at 12,149.19 points, a slight decline of 0.36%, with trading volumes reaching SAR 6 billion. This followed a notable rise on Tuesday, when the index closed at 12,193.64 points, marking its highest level in over two months.

On Wednesday, the market saw 620 million shares traded across more than 480,000 transactions, with shares of 90 companies increasing in value, while 138 companies recorded declines.

The biggest gainers included GO Telecom, Sumou, Dallah Healthcare, Al Akaria, and Seerah, while the largest decliners were Jahez, Anaam Holding, Banan, Zamil Industrial, and ACWA Power, with price changes ranging between +3.36% and -7.16%.

The most active stocks by trading volume were Anaam Holding, Al Baha, Shams, Jahez, and Americana, while the highest by trading value were Jahez, Saudi Aramco, Al Rajhi Bank, Anaam Holding, and SABIC.

In remarks to Asharq Al-Awsat, Dr. Suleiman Al-Humaid Al-Khalidi, a financial market analyst and member of the Saudi Economic Association, said the banking and energy sectors have been critical to stabilizing the Saudi market index at the 12,000-point range.

“The banking sector in the Saudi stock market ranks among the most profitable globally and remains a major pillar of support for the index,” he said. He also highlighted the energy sector’s importance, particularly Saudi Aramco, with expectations for increased dividend payouts exceeding SAR 1.96 per share this year.

Al-Khalidi predicted that the market index would continue its upward trend over the remaining 14 trading sessions of the year, potentially reaching 12,800 points, and exceeding 13,500 points early in 2025. He added that ongoing positive economic developments would further support the market’s growth trajectory.

He pointed to robust economic indicators, including 2.8% GDP growth in Q3 of 2024 and a projected 4.8% growth in 2025. He also emphasized Saudi Arabia’s ambitious SAR 1.1 trillion budget and SAR 1.2 trillion expenditures, crediting government fiscal policies for creating an attractive environment for economic growth and investment.

Saudi Arabia has also become a global hub for economic, tourism, and investment activities, with the current market investment value reaching approximately $400 billion, aligned with the nation’s goal of $3 trillion in market investments.

For his part, financial market expert Ubaid Al-Muqati highlighted the growing interest in the Saudi stock market among both local and international investors, driven by the strength of the Saudi economy and strong corporate profitability.

He noted that the accumulation of value at lower price levels has stimulated activity in the TASI index, fostering daily speculative trading and generating steady returns. These gains, in turn, create periodic price peaks and troughs for stocks.

Al-Muqati explained that the market operates in cyclical waves, with both upward and downward movements. Over the past two months, the index corrected from a peak of 12,390 points to a support level of 11,590 points, losing approximately 1,000 points in the process. However, the index has since regained these points during the last 10 trading sessions.



Boeing Aims to Help Build Advanced Saudi Military Industrial Base

F-15EX fighter jets. (Asharq Al-Awsat)
F-15EX fighter jets. (Asharq Al-Awsat)
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Boeing Aims to Help Build Advanced Saudi Military Industrial Base

F-15EX fighter jets. (Asharq Al-Awsat)
F-15EX fighter jets. (Asharq Al-Awsat)

Boeing has positioned its F-15EX fighter jet as a cornerstone of its strategy to support Saudi Arabia’s growing defense sector and ambitions for self-reliance as the Kingdom moves to localize over half of its military spending under Vision 2030.

The US aerospace giant said the F-15EX offers not only a cutting-edge combat platform but also an opportunity to build a fully integrated local industrial base, including manufacturing, maintenance services, knowledge transfer and training of Saudi talent.

The F-15EX is one of the most advanced fighter aircraft in the world, said Rob Novotny, the Executive Director of F-15 Business Development at Boeing's Air Dominance Division, in exclusive statements to Asharq Al-Awsat.

The company is looking to work closely with Saudi partners, particularly the Saudi Arabian Military Industries company (SAMI) to localize production and technical support within the Kingdom, revealed Novotny.

Speaking on the sidelines of a visit by US President Donald Trump to Riyadh, Novotny said the F-15EX offers a significant leap from earlier variants of the aircraft. It is equipped with an advanced AESA radar, a next-generation electronic warfare suite and digital flight controls that enhance maneuverability and operational efficiency.

Designed to meet the demands of next-generation warfare, the F-15EX is compatible with both manned and unmanned systems and can carry up to five times the ground-attack munitions and six times the air-to-air missiles compared to previous versions, he said.

The F-15EX delivers a combination of high performance, extended range and up to 50% lower operating costs compared to other fighters, making it a strategic and economic choice for air forces looking to modernize their fleets, Novotny explained.

He moved on to highlight that the F-15EX shares around 95% compatibility with the current F-15 models used by Saudi forces, allowing for a seamless integration that reduces the need for major new training programs or support infrastructure.

Boeing sees this as a key advantage for the Kingdom as it modernizes its air capabilities without disrupting existing operations.

Beyond aircraft delivery, the company is positioning itself as a long-term partner in Saudi Arabia’s military transformation. It is working to establish sustainable local capabilities through technology transfer, simulation-based educational programs, and advanced technical training for Saudi personnel.

These efforts are supported through collaboration with the state-owned SAMI, with projects already under way to localize production, maintenance, and upgrades of the F-15EX within the Kingdom.

Boeing also plans to double production of the F-15EX by 2026 to meet rising global demand, with Saudi Arabia expected to be among the first to benefit from the expanded capacity.

The company views Saudi Vision 2030 as a strategic framework for long-term cooperation. Boeing aims to expand its industrial presence through enduring partnerships focused on technology transfer, job creation, and the localization of defense capabilities, positioning the F-15EX as a flagship example of advanced military integration between the two sides, Novotny added.