RIYADH: The Saudi stock market has experienced a significant loss, with a decline of 500 billion riyals. According to Saudi media, the benchmark TASI index closed 700 points lower, ending at 11,200. The major drop has led to substantial losses, particularly for key companies.
Aramco Faces Major Loss
Oil giant Aramco saw its shares lose 340 billion riyals, significantly affecting its overall market performance. This downturn has raised concerns about the broader economic impact on Saudi Arabia, especially with such a major player in the energy sector experiencing a large-scale loss.
Regional Market Declines
Other Gulf stock markets, including Qatar, Kuwait, Muscat, and Bahrain, also faced losses. The Kuwait stock market dropped by 6.6%, while Qatar’s market saw a decrease of 5.5%. These regional declines highlight a broader trend of economic uncertainty in the Gulf countries.
Biggest Decline Since May 2020
Saudi media reports that this is the largest decline in Gulf stock markets since May 2020. The downturn in stock values has left many investors concerned about the future outlook of the region’s financial markets.
Cause of the Downturn
The decline in stock values has been attributed to the implementation of U.S. tariffs and a decrease in oil prices. These factors have had a ripple effect across the region, contributing to the market’s slump. Analysts predict that the ongoing challenges in the global economy could continue to affect the Gulf’s stock markets.
