Disclaimer: Please be advised that the information provided in this article is relevant as of the time of its composition. However, it is important to recognize that due to the periodic release of new financial reports on a quarterly basis, the status of the mentioned stocks may undergo changes. Therefore, readers are encouraged to exercise diligence and consult updated financial information before making any investment decisions.
In today’s article, we will briefly discuss halal stocks in Saudi Arabia. In Saudi Arabia, the interest for halal stocks is increasing dramatically, a lot of investors started to pay more attention to halal stocks than non-compliant or conventional stocks.
Saudi Arabia is currently home to more than a quarter of the GCC’s Islamic financial assets. According to the data at the beginning of 2020, total Islamic finance assets in Saudi Arabia exceeded $339 billion, leaving Malaysia in second place with around $145 billion. The 67.2% of the equity market in the region is in Saudi Arabia.
Halal Stocks in Saudi Arabia
The Saudi Stock Exchange, or Tadawul, is also known as the Saudi Stock Exchange. 219 firms have registered to trade their company stocks on Tadawul. An individual can invest in any of the 15 components/ sectors/ industries (Banks & Financial Services, Petrochemical Industries, Cement, Retail, Energy & Utilities, Agriculture & Food Industries, Telecommunication & Information Technology, Insurance, Multi-Investment, Industrial Investment, Building & Construction, Real estate and property development, Transportation, Media & Publishing, and Hotel & Tourism). A person should constantly look at the performance of any stock/companies’ previous performance as well as the performance throughout the financial crisis to obtain the highest return on investment. However, some researches found that the majority of corporations do poorly during the financial crisis, but Shariah-compliant equities perform better.
| Stocks in Saudi Arabia | 202 |
| Halal Stocks in Saudi Arabia | 157 |
| Non-Halal stocks in Saudi Arabia | 45 |
3 Samples of Halal Stocks in Saudi Arabia
1. Saudi Arabia Refineries Co.
Ticker: 2030.SR
Sector: Energy
The Saudi Arabian Refineries Company (SARCO), also known as Al-Masafi Saudi Arabian Co., invests in crude oil refineries and engages in various petroleum production and distribution activities. In addition to its petroleum activities, the company starts firms, acquires shares, and undertakes water projects, land reforms, and industrial and commercial projects.
Saudi joint-stock company was established under the companies in the Kingdom of Saudi Arabia under Royal Decree No. 376, date 08/14/1380.
2. Takween Advanced Industries Co.
Ticker: 1201.SR
Sector: Materials
Takween Advanced Industries SJSC is a Saudi Arabian company that manufactures and distributes plastic packaging and nonwoven textiles in domestic and international markets. The following are the company’s two segments: Disposable polystyrene cups, lids, and other plastic-related items, such as polystyrene sheet rolls used in forming, instant packing, and packaging in thermoformed and polystyrene cups and lids, and high-density bottles used in the dairy, food, and beverage industries; Non-woven fabrics include composite fabrics for use in the health, industrial, and medical sectors, as well as alcohol resistant and anti-static electricity fabrics used for surgical drapes, medical and protective gowns, and fabrics made for health applications such as children’s and adult diapers, as well as women’s diapers.
3. Saudi Industrial Export Company
Ticker: 4140.SR
Sector: Industrials
Saudi Industrial Export Co. engages in the marketing and importing of national industrial products. Moreover, the company also provides logistic services. These services include shipping, loading, supervision of inspection arrangements, correct documentation, and management of payment procedures, trade financing, and warehousing. The firm exports and imports such products as commodities, which include cement, clinker, steel, wheat, rice, soybeans, and corn; Fertilizers include sulfur, diaminopropionic acid (DAP), urea, titanium sublimation pump (TSP), and granulated triple super phosphate (GTSP), among others; Raw Materials include steel billets, chemicals and bauxites, and other Products.
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