Trading stocks is an age-old practice that has allowed individuals to turn a significant profit without working for it.
Stocks are attractive because they can be purchased at low prices and sold at high prices, leaving the speculator with large profits.
They are also attractive because the potential losses involved in trading them is limited; if one loses, they can choose to sell off their stocks (at no cost) and walk away with only the profits made.
However, most people don’t know what stocks are most popular to trade within Saudi Arabia.
This article will answer that question by highlighting which stocks are typically bought and sold on exchanges like Tadawul (The Saudi Stock Exchange).
First, it’s important to note that all stocks traded in Saudi Arabia are classified into one of two categories.
Shares
These stocks represent an ownership stake in a company. When someone buys shares, they become a part-owner of that company.
Bonds
These stocks represent a loan made to a company. When someone buys bonds, they are loaning money to that company in exchange for periodic payments and the return of the principal at a later date.
Now that we know what types of stocks are being traded let’s look at which ones are the most popular.
The following is a list of the top 5 most popular Dubai stocks to trade on Tadawul:
National Commercial Bank (NCB)
NCB is the largest in Saudi Arabia and has been listed on Tadawul since 2000.
The bank is present in 9 countries and offers a variety of financial services, including retail, commercial, and investment banking and asset management services via its subsidiaries.
SABIC (Saudi Basic Industries Corporation)
SABIC is an industrial company that engages in the manufacturing and distribution of chemicals and plastics.
The company operates through four divisions: Chemicals, Polymers, Metals, and Performance Products.
It was established in 1976 by royal decree with support from New York banks and today represents 10% of the market capitalization of Tadawul.
Al Rajhi Bank
Al Rajhi Bank is one of the largest financial institutions in Saudi Arabia. The bank was founded in 1957 by brothers Sulaiman and Mohammad Al Rajhi and offered a wide range of banking products and services to its customers.
Saudi Arabian Oil Company (Saudi Aramco)
Saudi Aramco is the state-owned oil company of Saudi Arabia and is responsible for the country’s oil production and exports.
The company was founded in 1933 and had a market capitalization of $1 trillion, making it the most valuable company in the world.
SABMiller plc
SABMiller plc is a British-South African multinational brewing and beverage company formed in 2002 when South African Breweries acquired Miller Brewing Company.
The company produces over 200 beer brands, including Peroni Nastro Azzurro, Grolsch, and Pilsner Urquell, and has a market capitalization of $66.4 billion.
There you have it – the top 5 most popular stocks to trade on Tadawul. So if you’re looking to get into the Saudi stock market, these are the companies you’ll want to start investigating.
In Summary
The first stock discussed is National Commercial Bank (NCB), the largest bank in Saudi Arabia. Established in 2000, NCB operates in 9 countries and offers various financial services, including retail, commercial, and investment banking and asset management services through its subsidiaries.
The second stock is SABIC (Saudi Basic Industries Corporation), which engages in the manufacturing and distribution of chemicals and plastics. Founded in 1976 by royal decree with support from New York banks, the company now represents 10% of Tadawul’s market capitalization.
The third most popular stock to trade on Tadawul is Al Rajhi Bank, founded in 1957. It offers a wide range of banking products and services to its customers worldwide.
Fourth on this list is Saudi Aramco, the state-owned oil company responsible for the country’s oil production and exports since 1933.
Finally, SABMiller plc makes a list, a British-South African multinational brewing and beverage company formed in 2002.
Today it produces over 200 beer brands, has a market capitalization of $66.4 billion, and operates in 75 countries.
To learn more about these companies and view other popular stocks traded on Tadawul, check out the full article above!