By Riyadh, May 28, 2025 — Saudi Arabia’s stock market is navigating a period of heightened volatility, influenced by fluctuating oil prices, delays in major infrastructure projects, and shifting global economic dynamics.
Market Performance and Oil Price Dynamics
The Tadawul All Share Index (TASI), the Kingdom’s primary stock market benchmark, has experienced notable fluctuations in recent weeks. On May 27, the index closed at its lowest level since early April, declining by 1.30% . This downturn reflects fragile market sentiment, influenced by uncertainty surrounding U.S. President Donald Trump’s tariff policy.
Oil prices, a critical factor for the Saudi economy, have also seen significant movements. Brent crude futures edged up to $64.16 a barrel, partially supported by the U.S. barring Chevron from exporting Venezuelan crude . However, the potential for Saudi Arabia to reduce July crude prices for Asian buyers to a six-month low adds to market uncertainty
Impact on Vision 2030 Projects
Delays and budget adjustments in key Vision 2030 projects have further influenced investor sentiment. The Public Investment Fund (PIF) has reportedly implemented spending cuts of at least 20% across more than 100 companies, including over 50 development firms. Notably, a $5 billion contract within the NEOM project was canceled, and the overall $500 billion NEOM initiative has been scaled back . These adjustments reflect a broader recalibration of the Kingdom’s ambitious infrastructure plans amid fiscal pressures.
Strategic Economic Adjustments
In response to these challenges, Saudi Arabia is leveraging its refining capabilities to mitigate the impact of reduced crude exports. The Kingdom has significantly boosted its oil refining capacity both domestically and internationally, with nine local refineries processing 2.94 million barrels per day in March 2025—near record highs—and an additional 4.3 million barrels per day capacity abroad . This strategic shift aims to maintain profitability amid oil market volatility.
Additionally, the government has secured a $2.5 billion Shariah-compliant revolving credit facility to support the Kingdom’s general budgetary requirements . This move aligns with Saudi Arabia’s medium-term public debt strategy, aiming to diversify funding sources and maintain fiscal stability.
Outlook and Diversification Efforts
Despite current market challenges, Saudi Arabia continues to pursue its Vision 2030 objectives, focusing on economic diversification and sustainable growth. Investments in renewable energy, technology, and tourism sectors are ongoing, with the Kingdom aiming to reduce its reliance on oil revenues . The introduction of single-stock options on the Tadawul exchange and increased foreign investor participation reflect efforts to enhance market resilience and attract international capital.
As Saudi Arabia navigates this complex economic landscape, the balance between managing short-term fiscal pressures and achieving long-term diversification goals remains a central focus for policymakers and investors alike.
