The prospects for the Saudi stock market remain strong in the medium term due to robust national growth and strong corporate profitability, top economists and traders said as the Tadawul All-Share Index (TASI) rose to a five-year high on Thursday.
The index climbed 74 points or 0.9 percent to 8,263 points, its highest level since September 2008.
“At current prices, the market is fairly valued so any upside will have to be carefully examined in terms of sustainability and liquidity,” John Sfakianakis, chief investment strategist at Masic in Saudi Arabia, told Arab News.
Faisal Alsayrafi, president of Financial Transaction House, said: "Investors are returning to the Saudi market because the fundamentals are very strong compared to other regional markets.”
He also said the available liquidity “is very high”.
Alsayrafi added: There is an increase of 60 to 65 percent in liquidity this year compared to last year.”
He said SABIC’s movements weighed on the main index. Saudi Basic Industries Corp. (SABIC) added 0.7 percent on Thursday.
He said: “SABIC shares were fluctuating in a narrow range for sometime. Now SABIC shares are showing some positive upward trend.”
Any increase in US stock markets also bodes well for the Saudi exchange, he told Arab News.
US stocks pulled back on Thursday from Wednesday’s record levels.
According to Reuters, the key Saudi index will have to post two consecutive gains above the previous peak of 8,223 points — hit in August this year — to confirm a breakout.
Commenting further on Thursday’s Tadawul peformance, Sfakianakis said: “With a 21 percent year-to-date performance, the Saudi market has largely achieved a valuation to catch up with its historical average ranges.”
Basil Al-Ghalayini, CEO of BMG Financial Group, said the physiological effect of Twitter’s debut floatation also contributed to positive market sentiment here.
Several factors have made a positive impact on investors’ confidence in Tadawul, he said. The recent announcement about two new IPOs in the Saudi market planned before the year-end and US Secretary of State John Kerry’s recent visit to Riyadh to restore the longstanding US-Saudi relationship also boosted market sentiment, he said.
The availability of liquidity in the hands of investors is adding strength to the market, said the CEO.
Banking shares index rose 1.1 percent on Thursday and the petrochemical index climbed 0.6 percent. Together, the two sectors make up 65 percent of the market’s total value.
Al-Rajhi Bank added 1.7 percent.
Saudi Telecom Co. surged 6.4 percent to a four-and-half-year high. The firm last month posted a surge in earnings and beat forecasts, Reuters reported.
At the end of last month, TASI closed at a level of 8,044.47. It gained 79.56 points (1 percent) over the close of the previous month.
On an YTD basis, TASI registered a positive increase of 18.28 percent (1,243.25 points). The highest close level for the index during October was 8,170.75. This was achieved on Oct. 24.
Blue chips drive Tadawul index to fresh record
Blue chips drive Tadawul index to fresh record
Using space science to protect Saudi Arabia’s environment
- Kingdom is harnessing satellite technology to forecast disasters, boost agriculture
RIYADH: Learning space science has delivered significant environmental benefits worldwide, helping many countries better understand and manage climate challenges.
Saudi Arabia is now taking steps not only to explore the galaxy but also to invest in future generations who can apply space science to pressing environmental issues at home.
Last November, the Space Academy, part of the Saudi Space Agency, launched a series of seminars designed to enhance knowledge and develop skills in space science and technology, with a particular focus on Earth observation.
Running for nearly a month, the program formed part of a broader strategy to nurture national talent, raise scientific awareness, and build data capabilities that support innovation and research across the Kingdom.
As efforts to strengthen the sector continue, important questions remain: How can space science translate into tangible environmental benefits? And how large is the global space economy?
In an interview with Arab News, Fahad Alhussain, co-founder of SeedFord, highlighted the scale of the opportunity and its environmental impact.
“To be frank, the slogan that we always use in space is that ‘saving the Earth from the space.’ It is all about this,” Alhusain told Arab News.
“You can recall a lot of related environmental issues like global warming, related to forests, related to the damage that happens to the environment. Without space, it would be almost impossible to see the magnitude of these damages.”
According to Alhussain, satellites have transformed how experts observe environmental changes on Earth, offering a comprehensive view that was previously impossible.
He said that “the transformation of technology allows even the non-optical ways of measuring, assessing, and discovering what is going on in the environment … you can even anticipate fire before it happens in the forest.”
“You can detect the ice-melt down, you can get huge amount of information and can see it through the weather maps…there is a huge section in the economy for the environment,” Alhussain commented.
A 2022 report by Ryan Brukardt, a senior partner at McKinsey & Company, published by McKinsey Quarterly, found that more than 160 satellites currently monitor Earth to assess the impacts of global warming and detect activities such as illegal logging.
Brukardt cited NASA as an example of how advanced satellite tools are used to track environmental changes, including shifts in ocean conditions, cloud cover, and precipitation patterns. He also noted that satellite data can help governments determine when immediate action is needed, particularly in response to wildfires.
FASTFACT
Did You Know?
- Satellites collect massive amounts of data, and AI is used to help interpret this information more efficiently and predict future outcomes.
- The global space economy surpassed $600 billion in 2024 and is projected to exceed $1 trillion by 2030.
- Saudi Arabia has established three key entities: the Supreme Space Council, the Saudi Space Agency, and the Communications, Space, and Technology Commission.
Beyond disaster response, satellites offer vital insights for agriculture. According to Brukardt’s report, scientists can use space-based data to monitor crop development and anticipate threats to harvests, such as drought or insect infestations.
These wide-ranging applications explain the rapid growth of the global space economy.
According to World Economic Forum research, the sector is projected to reach $1.8 trillion by 2035, nearly tripling from $630 billion in 2023.
For Saudi Arabia, expanding space science capabilities could help address the country’s arid conditions by monitoring desertification and identifying sources of air pollution. Early detection of droughts, heatwaves, and crop stress could support more effective environmental planning and response.
Space-based data could also play a critical role in tracking environmental changes in the Red Sea and surrounding coastal ecosystems, strengthening marine conservation efforts and supporting the Sustainable Development Agenda.
As Alhussain emphasized, advancing knowledge in space science and satellite technology enables experts to measure environmental damage accurately and predict disasters before they occur, allowing for more effective responses.
By investing in space science education and research, the Kingdom can build national expertise, strengthen environmental protection policies, enhance food and water security, and contribute to global efforts to combat climate change—while also benefiting from the rapidly expanding space economy.
Ultimately, a deeper understanding of space and its applications offers Saudi Arabia, and the world, better tools to anticipate climate challenges, protect ecosystems, and safeguard biodiversity.
“By collecting data and using satellites, you can better analyze and measure so many things that help the environment,” said Alhussain.
“There will be patterns where you can warn people, scientists and decision makers to do something about it.”
