With the countless challenges opposed by the abundance of opportunities in the capital markets, our highly experienced
team manages, with extreme sophistication, our portfolio equipped with rigorous research and thorough analysis.
The banking sector carries the biggest weight of the index in the Saudi stock market (Tadawul) due to the astounding share values of its listed companies. The Saudi banking sector is comparatively one of the strongest in the world and the reason is those conservative policies imposed by Saudi Arabian Monetary Agency (SAMA). And those policies have proved to be righteous in the midst of the international economic crisis back in 2008 when the Saudi Banking sector seemed indifferent whereas the international banking sector index was witnessing a free fall.
Retail and Agriculture sectors are both seen as defensive due to their independence from economic turbulences and crises. In Saudi, retail and agriculture are two of the most promising and highest potential sectors and this stems from the sheer growth in population and thus, consumption levels our country is witnessing in the present and the near future are attractive. One of the Retail sector’s attractive attributes is its diversity; it consists of companies that specialize in health, education, fashion, and many other activities. On another front, what is attractive about Agriculture in Saudi is the huge gap between what can be done and what is being done which resulted in the recent governmental initiatives to bridge such a gap.
What is special about Telecommunication sector is its stability in growth, continuous and relatively consistent dividends, and high predictability. Telecommunication is one of the leading sectors in Tadawul that can have a significant impact on the index and is considered to be defensive and resistant to any fluctuations or swings in the world economy.
Petrochemicals sector is the second largest in Tadawul and is heavily dependent upon exporting its products to East Asia and Europe. This sector is generally intertwined with Oil and Gas and that is where its importance stems from; its share values fluctuate depending on the performance of Oil and Gas and that is why they were at their lowest values in 2015 when oil prices went down to a new low since 2008. This sector is considered as a medium to long-term investment and is destined to have steady growth in the future.