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Saudi Stock Exchange () or Tadāwul () is a stock exchange in Saudi Arabia. Tadāwul was formed in 2007 as a joint stock company and the sole entity authorized to act as a securities exchange in Saudi Arabia, but trading began in 1954 as an informal financial market. It continued as such with only 14 listed companies through the 1970s and began to acquire some formal status as the Saudi Company for Share Registration in 1980. It is regulated by the Capital Market Authority but has become partially self-regulating since 2018. It lists 203 publicly traded companies (as of 31 December 2020). As of 31 December 2020, its trading hours are 10:00AM to 3:10PM, Sunday to Thursday. On 26 February 2017, the
Saudi Parallel Market (Nomu) The Saudi Parallel Market (Nomu), is a parallel equity market in Saudi Arabia launched the Saudi Stock Exchange (Tadawul) on 26 February 2017 with lighter listing requirements. Nomu serves as an alternative platform for companies to be publicly lis ...
was launched as a parallel equity market with lighter listing requirements to provide companies an alternative platform for the public listing. Tadāwul is completely owned by the Saudi Public Investment Fund.


History

The Tadawul All-Share Index (TASI) reached its highest point at 20,634.86 on 25 February 2006. Tadawul is an affiliate member of the
International Organization of Securities Commissions The International Organization of Securities Commissions (IOSCO) is an association of organizations that regulate the world's securities and futures markets. Members are typically primary securities and/or futures regulators in a national jurisdi ...
(IOSCO), the World Federation of Exchanges (WFE), the Arab Federation of Exchanges (AFE), and is also a member of the United Nations' Sustainable Stock Exchanges (SSE) initiative. The share capital of Tadawul is SAR 1.2 Bn divided into 120 million shares of equal value of SAR 10.


2006 stock market crash

Also known as the "Black February", the Saudi stock market collapsed in 2006, and the number of listed companies was 76, causing a loss of one trillion Saudi riyals, which led to the bankruptcy of many middle-income traders. Some of them sold their cars or invested their life savings on the market. The second day of the crash on Sunday 26 February 2006 witnessed a wave of collective selling in the first minute of trading, which caused an increase in panic and contact with more than 60 companies with the lowest rate, and the closure of all market companies on a sharp decline, as the sale of 1.5 million shares was executed in the first minute of trading, especially after the Kingdom’s Capital Market Authority (CMA) decided to reduce the volatility to 5% and implement it with the start of trading on Saturday, 25 February of the year 2006. The general index lost on the second day of the collapse nearly 980 points, equivalent to 4.75% of the total market, and the shares lost approximately 144.5 billion riyals out of its market value, the doors of hope for the return or stability of the market at reasonable levels of correction are closed. National economic catastrophe that affected citizens, revealed the low level of economic management that did not succeed in reading the market crisis before it occurred, and was not given enough importance, then it was unable to manage and deal with it in an optimal manner, which helped in the occurrence of the major economic disaster in the country's history. Some attributed the cause of the collapse to many things, including stopping a number of speculators and the fear of others of similar sanctions, and to the decision to determine the percentage of fluctuation and the abolition of fractures, and prevent the return of speculators ’commissions, which seem weak compared to the main collapse of the price inflation that the regulatory authorities contributed to. This necessitated King Abdullah's personal intervention to resolve the crisis, where he ordered the division of shares and the permitting of non-Saudi residents to invest directly in the stock market and not limiting it to investment funds and reducing the nominal value of the share, which were issued by decisions of the CMA and was applied.


Trading times

There are five trading days – Sunday, Monday, Tuesday, Wednesday and Thursday, with one trading session per trading day. No trading happens on official Saudi holidays, which are
Saudi National Day Saudi National Day ( ar, اليوم الوطني للمملكة العربية السعودية ''al-Yawm al-Waṭanī lil-Mamlaka al-ʿArabiyya as-Saʿūdiyya'') is celebrated in Saudi Arabia every 23rd of September to commemorate the renaming ...
, Eid al-Adha and Eid al-Fitr. Times are
UTC+3 UTC+03:00 is an identifier for a time offset from UTC of +03:00. In areas using this time offset, the time is three hours later than the Coordinated Universal Time (UTC). Following the ISO 8601 standard, a time with this offset would be wr ...
:


Annual returns

The following table shows the annual development of the Tadawul All-Share Index since 2001.


See also

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Economy of Saudi Arabia The economy of Saudi Arabia is the largest in the Arab world, Middle East and the eighteenth largest in the world. A permanent and founding member of OPEC, the OPEC, Saudi Arabia is also a member of the G20 forum as one of the world's largest ...
*
Electronic Securities Information System The Electronic Securities Information System (ESIS) was Saudi Arabia's stock exchange until it was replaced by Tadawul in 2001. ESIS was introduced in 1990 and administered by the Saudi Arabian Monetary Agency (SAMA). See also * Tadawul Saud ...
*
List of Asian stock exchanges This is a list of Asian stock exchanges. In the Asian region, there are multiple stock exchanges. As per data from World Federation of Exchanges, below are top 10 selected in 2020: * Shanghai Stock Exchange, China * Tokyo Stock Exchange, Japan ...
*
List of companies of Saudi Arabia Saudi Arabia is a sovereign Arab state in Western Asia constituting the bulk of the Arabian Peninsula. The country's command economy is petroleum-based but slowly diversifying; in 2017 58% of budget revenues and 85% of export earnings came from th ...
* List of stock exchanges


References


External links

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Official website of the Capital Market Authority
{{DEFAULTSORT:Tadawul Financial services companies established in 2007 2007 establishments in Saudi Arabia Stock exchanges in Asia Finance in Saudi Arabia Stock exchanges in the Middle East Stock exchanges in Saudi Arabia 2021 initial public offerings