Tadawul trading screen
Riyad Capital expects Saudi market earnings to grow modestly in 2024, with a projected increase of 6%-8% in 2025. 
The firm expects positive sentiment for the Saudi market in 2025, driven by a decline in interest rates, favorable global market responses, stronger earnings growth in banking, technology, media, communications, and emerging sectors, and a positive revaluation of price-to-earnings ratios reflecting economic growth.
This outlook is supported by ongoing major projects and leadership in emerging sectors driving diversification, as well as continued public offerings on the Main Market (TASI) and Nomu-Parallel Market following a strong 2024, with listings across various sectors.
Riyad Capital noted that trading volumes and market caps rose in 2024 and are expected to remain stable or rise in 2025, fueled by increased institutional investor participation and more diverse listings.
With growing foreign investment, the connection between Saudi and global markets is set to strengthen, according to the brokerage.
The firm’s 2025 outlook is positive for banking and neutral for energy and materials sectors. The table below outlines Riyad Capital’s sector outlook for the Saudi market in 2025:
Riyad Capital’s 2025 Sector Outlook
Sector
Outlook
Banks
Positive
Energy
Neutral
Materials
Neutral
Healthcare Pharmaceuticals
Positive
Retail
Positive
Utilities
Neutral
Telecom IT
Positive
Transportation
Positive
Software Services
Positive
Food Beverages
Positive
Tadawul trading screen
Riyad Capital expects Saudi market earnings to grow modestly in 2024, with a projected increase of 6%-8% in 2025.
The firm expects positive sentiment for the Saudi market in 2025, driven by a decline in interest rates, favorable global market responses, stronger earnings growth in banking, technology, media, communications, and emerging sectors, and a positive revaluation of price-to-earnings ratios reflecting economic growth.
This outlook is supported by ongoing major projects and leadership in emerging sectors driving diversification, as well as continued public offerings on the Main Market (TASI) and Nomu-Parallel Market following a strong 2024, with listings across various sectors.
Riyad Capital noted that trading volumes and market caps rose in 2024 and are expected to remain stable or rise in 2025, fueled by increased institutional investor participation and more diverse listings.
With growing foreign investment, the connection between Saudi and global markets is set to strengthen, according to the brokerage.
The firm’s 2025 outlook is positive for banking and neutral for energy and materials sectors. The table below outlines Riyad Capital’s sector outlook for the Saudi market in 2025:
Riyad Capital’s 2025 Sector Outlook
Sector
Outlook
Banks
Positive
Energy
Neutral
Materials
Neutral
Healthcare Pharmaceuticals
Positive
Retail
Positive
Utilities
Neutral
Telecom IT
Positive
Transportation
Positive
Software Services
Positive
Food Beverages
Positive
