Overview:

Saudi Arabia closed the 2025 fiscal year with revenues reaching 1.1 trillion riyals, demonstrating economic resilience amid volatile global markets. Non-oil revenue performance surpassed expectations, supporting diversification goals under Vision 2030. Concurrently, oil prices retreated sharply as energy supplies resumed through the Strait of Hormuz following a ceasefire agreement between the United States and Iran, with Brent crude falling below 73 dollars per barrel. The Saudi stock index closed at 10,933.23 points with trading volume of 4.2 billion riyals.

Details:

Foreign investor holdings in Saudi equities approached half a trillion riyals, reaching 452.39 billion riyals and closing a gap of 47.61 billion riyals to the 500 billion threshold. This surge reflects growing confidence in domestic market stability and reform initiatives.

Domestic investment activity remained robust across sectors. The real estate developer Asas Al-Aqar announced a one billion riyal investment to develop three residential towers in Mecca within the Masaar destination project. Additionally, the Saudi Water Partnerships Company advanced initiatives exceeding 56 billion riyals to strengthen private sector participation in water sustainability.

Gold prices declined to their lowest levels in seven months, pressured by dollar strength and rising expectations of United States Federal Reserve interest rate increases. The dollar itself approached its strongest monthly performance in approximately one year on similar expectations of sustained American economic resilience.

Outlook:

Investors are monitoring whether sustained non-oil revenue growth and diversification will offset longer-term oil price volatility. The domestic real estate and infrastructure sectors show renewed momentum, particularly ahead of Saudi Arabia's hosting of the 2034 FIFA World Cup, which officials describe as a strategic opportunity to accelerate quality development projects.

Currency and commodity movements warrant close attention as Federal Reserve policy trajectory becomes clearer in coming weeks.