Saudi stocks lose $133b as global markets react to US tariffs

The Saudi stock market experienced its largest daily drop in five years on Sunday, losing more than 500 billion riyals as the index fell by 6.78%. This marked the worst loss since the early days of the COVID-19 pandemic, according to state media.

The sharp decline was triggered by the imposition of sweeping trade tariffs by the United States, which led to a global stock market rout and raised fears of a full-scale trade war and potential recession.

State-run television channel Al-Ekhbariya noted that the Saudi stock index closed nearly 7% lower, shedding over 800 points. It described the drop as "the largest daily loss in five years," with major Saudi companies, including oil giant Aramco, suffering significant blows.

The tariffs, introduced by former President Donald Trump, have significantly impacted global markets, with Saudi stocks bearing the brunt of the fallout. The utilities sector saw an 8.4% drop, while banking, telecommunications, and energy sectors fell by 6.9%, 5.9%, and 5.29%, respectively.

Shares of Saudi Aramco, a cornerstone of the kingdom's economy, plummeted by 6.2%. According to Al-Eqtisadiah, the state-run financial newspaper, the Saudi stock market lost more than half a trillion riyals (approximately $133 billion) in value during Sunday’s trading session.

A significant portion of the losses was attributed to Aramco’s market value, which fell by more than 340 billion riyals.

Other Gulf stock markets mirrored the global trend, suffering substantial losses as countries around the world grappled with the impact of Trump’s tariffs. Analysts predict further declines when markets reopen on Monday.