The Saudi stock market experienced its largest daily drop in five years, with the index falling by 6.78% on Sunday. This marked the worst loss since the early days of the Covid-19 pandemic, according to state media.
According to news agency AFP, the sharp decline was triggered by the recent imposition of sweeping trade tariffs by the US, which led to a global stock market rout and heightened fears of a full-scale trade war and potential recession.
Al-Ekhbariya, the state-run television channel, reported that the Saudi stock index closed nearly 7% lower, losing over 800 points. The news outlet described the drop as “the largest daily loss in five years” and pointed out that many Saudi companies, including the oil giant Aramco, were hit hard by the downturn.
The tariffs, introduced by President Donald Trump, have had a significant impact on global markets, with Saudi stocks bearing the brunt of the fallout. The utilities sector saw a 8.4% drop, while banking, telecommunications, and energy sectors fell by 6.9%, 5.9%, and 5.29%, respectively.
Shares in Saudi Aramco, a key pillar of the kingdom’s economy, plummeted by 6.2%. According to the state-run financial newspaper Al-Eqtisadiah, the Saudi stock market lost more than half a trillion riyals (approximately $133 billion) in value during Sunday’s trading session.
A substantial portion of the losses was attributed to the drop in Aramco’s market value, which fell by more than 340 billion riyals.
Other Gulf stock markets also mirrored the global trend, suffering significant losses as countries across the world grappled with the effects of Trump’s tariffs. This turmoil has sparked a panic that has lasted for several days, and analysts predict further declines when markets reopen on Monday.