Saudi market plunges nearly 7% after US tariffs shake investors
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Sunday's rout erased more than half a trillion Saudi riyals—equivalent to about $133 billion—in market value, according to financial daily Al-Eqtisadiah.
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Workers take down a giant Saudi flag, that measures 49.5 meters by 33 meters (162 feet by 108 feet) for weekly maintenance, from what is believed to be the tallest flagpole in the world and one of Jiddah's landmarks, at King Abdullah Square, in Jiddah, Saudi Arabia, Thursday, Jan. 28, 2021. (AP)
The Saudi stock exchange was hit by its sharpest single-day decline in five years on Sunday, shedding nearly 7% in a dramatic response to sweeping new US trade tariffs announced by President Donald Trump.
Al-Ekhbariya, the state-run news network, reported that "the Saudi stock index closed trading down (nearly) 7 percent, losing more than 800 points." The broadcaster called it "the largest daily loss in five years," noting widespread losses across key sectors, with dozens of listed firms—including oil giant Aramco—deep in negative territory.
"Trump's tariffs weighed heavily on global markets, and specifically today on Saudi markets," Al-Ekhbariya said, pointing to the heavy exposure of Gulf economies to global trade flows and oil exports.
Sunday's rout erased more than half a trillion Saudi riyals—equivalent to about $133 billion—in market value, according to financial daily Al Eqtisadiah. The paper reported that Saudi Aramco alone accounted for over 340 billion riyals ($90+ billion) of that loss, with the company's shares down 6.2%—its most severe drop since the early days of the pandemic.
Additional data confirms the widespread nature of the sell-off:
- Utilities sector dropped 8.4%
- Banking fell 6.9% (Al Rajhi Bank and Saudi National Bank were among the hardest hit)
- Telecommunications declined 5.9%
- Energy sector slumped 5.29%
Tariff sock
The crisis extended well beyond Saudi Arabia. Regional markets also plunged in tandem with global indices. Qatar's stock index fell 4.2%, with heavy losses at Industries Qatar and Qatar National Bank. Kuwait's market dropped 5.7%, while Egypt's EGX30 index slid 3.3%. These reactions mirror losses in Europe and Asia, which closed last week in the red following the US announcement.
The immediate trigger behind this market chaos is President Trump's introduction of "reciprocal" tariffs—starting at 10% but adjusted upward based on bilateral trade deficits with the US. This aggressive move has shaken investor confidence, with analysts warning of a prolonged economic fallout if retaliatory tariffs and reduced trade flows follow.
Read more: Saudi Aramco profits fall 12% as oil prices drop: FT
Further compounding the pressure, oil prices tumbled 7%, reaching their lowest level in three years. This decline was driven not only by trade tensions but also by unexpected output increases from OPEC+ producers, further undercutting oil-exporting economies like Saudi Arabia.
Axios in March reported that Trump is planning a visit to Saudi Arabia in mid-May 2025, where he is expected to pursue major investment agreements and strengthen economic ties with the kingdom. The report also mentioned that Trump might extend the trip to include stops in Qatar and the United Arab Emirates. However, the White House has not officially confirmed the visit.
