Overview:

Saudi Arabia's equity market gained ground on Thursday amid robust trading activity valued at 4.6 billion riyal, while government budget data showed stronger fiscal performance. Second-quarter revenues reached 338.7 billion riyal (90.3 billion dollars), with non-oil revenues surging 32 percent quarter-on-quarter. The insurance sector continued expansion, with written premiums exceeding 84.3 billion riyal in 2025, up 10.7 percent annually. Several listed companies posted solid earnings gains during the quarter.

Details:

The Saudi Arabia Tadawul index closed Thursday at 10,589.72 points, up 45.62 points on trading volume of 4.6 billion riyal. Second-quarter budget revenues reached 338.784 billion riyal against expenditures of 373 billion riyal, marking the highest quarterly revenue level in 24 months. Non-oil revenues climbed to 154 billion riyal (41.1 billion dollars) in the period, reflecting increased economic diversification efforts. Government spending focused heavily on health and social development at 170.607 billion riyal and education at 109.734 billion riyal during the first half of 2026.

The insurance sector demonstrated sustained growth momentum, with aggregate written premiums reaching 84.3 billion riyal in 2025, representing 10.7 percent year-on-year expansion driven by sector-wide broadening. The insurance regulator issued over 180 enforcement decisions and fines totaling approximately 25 million riyal during 2025, while processed claims payments reached 53 billion riyal.

Corporate earnings in the second quarter showed mixed performance. Riyad Care net profit rose 17.6 percent to 94 million riyal; Al-Amoudi Industrial Group earnings increased 9.8 percent to 192 million riyal; and Al-Maamen Information Systems profit jumped 35 percent to 43.5 million riyal. The Cooperative Insurance Company reported second-quarter earnings of 321.7 million riyal, down 31.2 percent from the prior year period.

Outlook:

Investors are monitoring how higher non-oil revenue growth and maintained budget discipline support economic diversification goals ahead. Markets remain attentive to U.S. Federal Reserve policy signals and Middle East regional developments affecting oil price stability and capital flows.