Large Cap Saudi Stocks: A Look at the Market Leaders 

The Saudi stock market today has been bustling with activity across various sectors. And as one of the most vibrant markets in the Middle East, Saudi Arabia continues to attract both local and international investors.  

In this blog, we’ll dive into the large-cap Saudi stocks, exploring what makes these companies stand out. 

Here’s a look at some large-cap stocks in Saudi Arabia: 

Saudi Aramco (Tadawul Stock Exchange: 2222): Saudi Aramco, founded in 1933, is a leading global petroleum and natural gas company based in Saudi Arabia. In 2019, it became a publicly traded company, making history with the largest IPO ever. Aramco is one of the world's most valuable companies, attracting a broad range of investors, from individuals to sovereign wealth funds. 

(All-time stock movement of Aramco) 

Al Rajhi Bank (Tadawul: 1120): Al Rajhi Bank, established in 1957, is one of the largest Islamic banks globally, with operations in Saudi Arabia, Kuwait, Jordan, and Malaysia. It’s popular among both domestic and international investors, featuring in global indices and ETFs like the iShares MSCI Saudi Arabia ETF (KSA). 

(All-time stock movement of Al Rajhi Bank) 

ACWA Power (ACWA) (Tadawul: 2082): ACWA Power Co., founded in 2004 and based in Riyadh, Saudi Arabia, develops, owns, and operates independent water and power projects. It operates in three main segments: Thermal and Water Desalination, Renewables, and Others. The company also manages investments and works with contractors to deliver technical solutions. 

(All-time stock movement of ACWA) 

Saudi Basic Industries (SABIC) (Tadawul: 2010): SABIC, founded in 1976, is a leading global chemical manufacturer based in Saudi Arabia. It's one of the Middle East's most valuable companies, attracting a broad range of investors, including institutions, individuals, and sovereign wealth funds. 

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(All-time stock movement of SABIC) 

Saudi National Bank (SNB)  (Tadawul: 1180): The Saudi National Bank (SNB), formerly Alahli Bank, is one of Saudi Arabia's largest financial institutions, offering comprehensive banking and investment services. Established in 1953, SNB operates in several countries, including Egypt, Bahrain, and Jordan. It is a key player in global indices and ETFs, attracting both domestic and international investors. 

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(All-time stock movement of SNB) 

(Source: TradingView, Capex.com) 

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The Growth of Saudi Arabia's IPOs in 2024 (So far!)  

On the IPO front, in the first half of 2024, GCC markets raised $3.6 billion from 23 IPOs, and Saudi Arabia led with $2.1 billion from 19 IPOs, accounting for 59% of the total, marking a 141% increase from the year earlier, with the largest IPO being Dr. Soliman Abdel Kader Fakeeh Hospital Company, raising $764 million on Tadawul.  

In fact, Saudi Arabia's Tadawul captured the majority of IPO proceeds, followed by Dubai and Abu Dhabi exchanges. 

Overall, the top five IPOs in the GCC included Dr. Soliman Abdulkader Fakeeh Hospital Company ($764 million), Alef Education ($515 million), Parkin ($429 million), Spinneys ($375 million), and Modern Mills Company ($314 million). (Source: Zawya) 

Read more: Upcoming IPOs in the UAE for 2024 

An Update on Saudi Arabia’s Vision 2030 

In 2016, Saudi Arabia’s King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman launched the Vision 2030 reform plan focusing on three key goals: creating a vibrant society, building a thriving economy, and becoming an ambitious nation.  

The plan includes increasing life expectancy, boosting non-oil GDP, empowering women and youth, and enhancing global competitiveness.  

The Vision 2030 also seeks to improve the quality of life, attract foreign investment, and promote transparency and accountability, positioning Saudi Arabia as a leading global economy and a hub for international trade. (Source: Al Arabiya) 

And in April 2024, Saudi Arabia’s Finance Minister Mohammed Al Jadaan announced that the kingdom will adapt to economic and geopolitical challenges by adjusting the pace of Vision 2030 projects, either downscaling or accelerating them as needed. While some goals might need to be reassessed, the kingdom aims for quality growth rather than just quantity. 

Despite some setbacks, such as the Neom project likely hosting fewer residents than planned, 87% of the 1,064 Vision 2030 initiatives are on track or completed. Al Jadaan emphasized flexibility in achieving Vision 2030 goals and stated that developing economies should not be forced to choose sides between global powers. (Source: The National) 

Bottom line 

As Saudi Arabia continues to implement its Vision 2030 plan, aimed at diversifying the economy and reducing its dependency on oil, investors can expect more IPO opportunities in the Saudi stock market.  

Whether you are a seasoned investor or new to the market, keeping an eye on the Saudi economy and financial markets can provide valuable insights into potential investment opportunities.  

As always, thorough research and a well-diversified portfolio are key to successful investing. 

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