The Saudi stock market experienced a dramatic collapse on Sunday, losing over SR500 billion in market value as a result of escalating trade tensions triggered by US tariffs. Saudi Aramco led the downturn with SR340 billion in losses, while Gulf and global markets also felt the impact.
Heavy Losses in Saudi Market
Saudi Arabia’s benchmark Tadawul All Share Index (TASI) dropped by over 700 points (6.1%) to fall below 11,200 points, its steepest drop since May 2020. Shares of Saudi Aramco were hit the hardest, tumbling 6.2%, erasing SR340 billion in market capitalization.
According to a report by Al-Eqtisadiah, thirty-four companies listed on TASI and Nomu touched historic lows, including notable names such as Takween, Al Amar, Gulf General, and Naqi. Trading volumes were concentrated in Al Rajhi, Aramco, and STC shares, reaching SR2.2 billion within 30 minutes.
Regional Markets Also Suffer
Other Gulf markets followed the downward trend, with Qatar, Kuwait, Muscat, and Bahrain witnessing sharp falls:
- Kuwait Stock Exchange: Dropped 6.6%
- Qatar Stock Exchange: Fell 5.5%
- Muscat Securities Market: Declined by 2.1%
- Bahrain Stock Exchange: Down by 2.5%
Stock markets in the UAE remained closed due to the weekend and were expected to resume trading Monday.
Impact of Trump’s Trade Tariffs
The crisis was triggered by US President Donald Trump’s announcement of a 10% tariff on Gulf imports, which took effect on April 5. Additional tariffs between 30% and 41% were also imposed on major economies such as China, Japan, and several European nations.
This move was framed by Trump as a response to “unfair trade practices,” but has raised significant concerns over global economic stability. Analysts warn of disruptions to global supply chains and rising raw material costs.
Global Ripple Effects
Markets across the globe are bracing for further volatility. Wall Street suffered heavy losses, with nearly $2 trillion wiped off the S&P 500, marking one of the worst trading days since the peak of the COVID-19 pandemic sell-off.
In Egypt, the EGX 30 index dropped by 3.6%, leading to a temporary suspension of trading for 11 stocks. The Jordanian Stock Exchange declined by 2% with 60 companies recording losses.
Nomu Parallel Market Downturn
The Nomu Parallel Market Index fell by 5% during Sunday’s session, losing gains from five consecutive sessions. Thirteen Nomu-listed firms, including Taqat, Obeikan Glass, and Arabica Star, saw their shares plummet to all-time lows.
Looking Ahead
With markets set to reopen Monday, investors are on high alert. Trump’s inconsistent messaging about negotiating or easing tariffs has added further uncertainty to an already tense global financial environment.
As highlighted in recent Reuters reports, many countries are now reevaluating their trade strategies in response to what is seen as the highest level of US tariffs in a century.
