NEW YORK, January 1, 2026, 09:45 ET — Market closed
Saudi Arabia’s benchmark Tadawul All Share Index (TASI) ended Thursday up 0.6% at 10,549, starting 2026 on a firmer footing, Argaam data showed.
Turnover — the value of shares traded — was about 1.6 billion riyals, its lowest since December 2018, as many global markets stayed shut for the New Year holiday.
The index ranged between 10,497 and 10,558, while Saudi Aramco and Al Rajhi Bank rose less than 1% and Al Khaleej Training and Education gained about 8%.
The early-year rise follows a weak 2025: the Saudi index ended about 13% lower and oil giant Saudi Aramco fell about 15%, Reuters data showed.
Milad Azar, market analyst at XTB MENA, said the outlook for 2026 remains positive, but “key risks could remain oil and global growth.”
He added the market may rebound as monetary policy eases and interest rates fall, improving liquidity — how easily investors can trade without moving prices.
Investors are now looking for signs that trading activity can recover from late-2025 lows, because a market rally without volume tends to fade fast.
Thursday’s low turnover made the first session particularly sensitive to domestic headlines.
One headline was fiscal: the National Debt Management Center said it had finalised a $13 billion, seven-year syndicated loan — arranged by a group of banks — to help finance power, water and public utilities projects.
The deal forms part of the kingdom’s medium-term debt strategy, the centre said.
On the corporate side, Al Khaleej Training and Education said its wholly owned unit Smart Link signed a 15.98 million riyal contract with the Saudi Electricity Regulatory Authority to operate and manage the authority’s contact centre and digital channels.
The 24-month contract is expected to support the company’s financials from 2026 and 2027, it said in a filing to Tadawul.
For traders, contract wins matter because they feed earnings visibility in a market that has been wrestling with tighter liquidity and a higher cost of capital.
They can also spark rotation into services and utilities-linked names when investors expect government-backed project spending to pick up.
Buying was broad-based, led by consumer staples, information technology and utilities, with blue chips — the market’s biggest stocks — in demand, Reuters data showed.
Riyad Bank rose 1.7% and ACWA Power added 1.2%.
In the region, Oman’s MSX30 index gained 0.5%, and the country approved a 2026 budget projecting a 530 million Omani rial ($1.38 billion) deficit, equal to 1.3% of GDP, a state report said.
The broader region was quieter, with several markets shut for the New Year holiday, leaving Saudi and a handful of peers to set the early tone for risk appetite.
That dynamic can reverse quickly once global desks return and price discovery improves.
Before the next session, investors will watch whether turnover recovers as international markets reopen after the holiday, a test for whether Thursday’s gains have follow-through.
Oil prices remain the key macro driver for Saudi equities, and traders will focus on any move that changes expectations for government revenue and spending.
Moves in U.S. interest-rate expectations can also feed through to Saudi funding costs via the riyal’s peg to the dollar.
On the corporate front, investors are hunting for fresh contract wins and updates on capital spending, dividends and IPO plans — signals of how companies plan to balance growth and cash returns in 2026.
