A Resilient Market
Despite the challenges brought by the COVID-19 pandemic, the market recorded impressive growth in 2020. Tadawul retained its position among the largest ten exchanges in the world and is also one of the three leading emerging market exchanges. The Exchange recorded impressive gains in several key market indicators such as daily average value traded, number of transactions and number of shares traded. The last two figures reflect the liquidity in the market which is further confirmed by the increase in market turnover ratio. A total of 21 industry groups are covered among the listed companies. In 2020 the concentration of value traded in the largest industry groups has reduced, which is a healthy sign.
A major step forward for the Exchange was the completion of the fifth and final tranche of the FTSE Russell Emerging Markets Index. This achievement demonstrates the recognition of the numerous market reforms implemented over the past few years. Another key development that signified the growing maturity of the market was the introduction of derivatives.
The COVID-19 pandemic did not have a negative impact on the trading or entry of QFIs. In fact, QFIs turned out to be net buyers to the tune of SAR 22.4 Bn for the period January to December. The number of QFIs has increased from 1,939 in January 2020 to over 2,300 at the end of the year.
A total of 53 securities have been listed since 2014 in the Main Market and Nomu; total offered value over the period has been approximately SAR 160 Bn.
Value traded by industry group
The value traded and percentage of total value traded of the largest three industry groups in the respective years are shown below:
A significant feature is that in 2020 the concentration in the three largest industry groups has reduced compared to the previous two years.
Inclusion in Global Indices
The index has derived numerous benefits by inclusion in the three emerging market indices.