Catenaa, Sunday, January 04, 2026- Saudi Arabian stocks fell by the most since April as investors considered the possible fallout of geopolitical tensions in Yemen, Iran, and Venezuela.
The Tadawul All Share Index dropped 1.8% on Sunday, the most since US President Donald Trump’s tariffs roiled global markets in April, with all industry groups in the red.
The benchmark also closed at its lowest since October 2023, a level it has hovered around for much of the past month.
Stocks in Qatar, Oman, and Bahrain ticked slightly higher.
The moves came as the kingdom called on Yemen’s southern factions to enter into talks in Riyadh as clashes continued between Saudi-backed forces and separatist rivals backed by the United Arab Emirates.
Meanwhile, Iran’s Supreme Leader Ayatollah Ali Khamenei pushed back against deadly protests he blamed external forces for inciting.
Saudi Arabian equities are coming off their worst annual performance since 2015 amid a confluence of factors, including subdued oil prices that restrain public spending and company earnings.
The outlook for 2026 performance is mixed, with some analysts pointing to upside from potential changes in foreign ownership limits and others saying the market generally lacks momentum.
Meanwhile, OPEC+ confirmed on Sunday that it will keep oil production steady through the first quarter of 2026, as eight key producers reaffirmed their commitment to market stability amid a steady global economic outlook and what they described as healthy oil market fundamentals.
Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman met virtually on January 4 to review global market conditions and outlook.
The group reiterated its decision, first announced on November 2, 2025, to pause planned production increases in February and March 2026, citing seasonal demand patterns.
