Saudi Stock Exchange Tadawul

The history of the Saudi Stock Exchange officially begins in 2007 when the exchange was formerly established, however, its roots go back further than this to a largely informal market that has been operating since the 1970s. At this point, 14 companies were listed on the exchange, and it wasn’t until 1984 that the Saudi government set up a ministerial committee to regulate the market. In 2003 the newly created Capital Marketing Authority became the exchange’s sole regulator.

With more regulation in place, the way was paved for the launching of the Tadawul (or Saudi Stock Exchange) in 2007. It has been pivotal to the economy of the Middle East ever since and is considered the GCC’s (Gulf Cooperation Council) main stock exchange.

Technological advancements have since followed, often with the cooperation of US exchanges. For example, in 2015 the Saudi Stock Exchange implemented the NASDAQ X-STREAM INET Trading System, and in 2017 the exchange signed an agreement with NASDAQ to transform their post-trade technology infrastructure.

Developments were also made closer to home, with the Saudi Parallel Market (NOMU) also launching in 2017. This is a parallel equity market with lighter listing requirements than the Tawadul, enabling different avenues for investors in the Saudi economy.

In 2020, the Saudi Stock Exchange reported a negative impact from the Covid-19 epidemic and announced a variety of measures of protection and safety.

The primary index that follows the Tadawul is the Tadawul All Share Index (TASI). This index follows the performance of every stock listed on the Saudi Stock Exchange and is a key indicator for both the Saudi economy and the economic performance of the Middle East more broadly.