Overview:
Saudi Arabian financial markets closed lower today, with the benchmark index dropping 75.98 points to 10,811.57, though crude oil prices continued their upward trajectory above USD 83 per barrel amid geopolitical tensions around the Strait of Hormuz. Corporate earnings for the second quarter of 2026 revealed significant divergence, with some industrial firms posting substantial gains while others recorded steep declines. Real estate and renewable energy projects continued to draw investment attention.
Details:
The Saudi main market index fell on moderately high trading volumes of 5.6 billion riyals across 254 million shares. Oil prices strengthened, with Brent crude advancing to USD 83.50 per barrel as investors monitored ongoing diplomatic discussions between Iran and Oman regarding Persian Gulf shipping corridors. Gold retreated slightly, settling near USD 4,235 per ounce after earlier gains, with precious metals losing support as crude oil gained.
Quarterly corporate results illustrated sector-specific performance disparities. Al-Yamama Iron Industries posted a 304 percent profit surge to 62 million riyals, while Al-Manjam Food achieved a 173.4 percent increase to 84.7 million riyals. Conversely, Ameanate Arab Saudi expanded losses by 236 percent to 68 million riyals, and Pipes Arabia saw profits decline 74 percent to 8.9 million riyals. Saleh Al-Rashid fell 64.4 percent to 6.4 million riyals. Aqua Water and Energy generated 653 million riyals in net profit during the first half.
The Central Bank reported monetary liquidity rose 6.77 percent to 3.382 trillion riyals in the first half of 2026. Private sector imports surged 58 percent to 15.342 billion riyals in June, while banks increased foreign currency purchases by 63 percent during the same month, signaling growing business activity.
Outlook:
Investors are monitoring geopolitical developments affecting crude oil supply flows, particularly discussions between Iran and Oman. Attention also focuses on continued diversification through renewable energy initiatives, including Saudi solar projects in Syria, and infrastructure expansion such as the new logistics corridor linking Oman and Saudi Arabia.