Saudi Arabia Market Update – May 2025

Analysis, Halal Investment, Market Analyses, Market News |

Assalamu Alaykum,

Welcome to our monthly economic and market update! As we enter a new month, here’s a recap of the key economic and market developments in the Saudi Arabia for May. Let’s get started.

Stock Market update

May proved to be a particularly challenging month for Saudi markets, with both major indices experiencing steep declines. The Tadawul All-Share Index dropped by 4.79%, closing at SAR10,990, while the Parallel Market Capped Index fell by 4.69%, ending the month at SAR26,809. The continued sell-off highlights deepening investor concerns and persistent economic pressures that have led to sustained weakness across the market.

  • Saudi Aramco has reduced its official selling prices for June 2025, cutting propane by $10 to $600 per tonne and butane by $20 to $570 per tonne. The price adjustments reflect ongoing shifts in global market dynamics and continue a downward trend from the previous month. Propane and butane, key liquefied petroleum gases, are vital for heating, vehicle fuel, and petrochemical applications.
  • Saudi Arabia has opened the June subscription window for its savings sukuk product “Sah,” offering a return of 4.76%, up from 4.66% in May. Managed by the National Debt Management Center under the Ministry of Finance, Sah is the Kingdom’s first Shariah-compliant, riyal-denominated savings sukuk tailored for individuals.
  • Bank AlJazira has announced that proceeds from the sale of fractional shares resulting from its recent capital increase have been deposited into the accounts of eligible shareholders. This follows the approval of the capital increase during the Extraordinary General Assembly meeting held on April 28, 2025 (30 Shawwal 1446H).
  • Lumi Rental Company has signed a framework agreement with the National Unified Procurement Company (NUPCO) to provide transportation services for medical supplies across Saudi Arabia. The agreement covers the supply of vehicles with drivers and handling equipment to transport goods from NUPCO warehouses to healthcare facilities nationwide. While non-exclusive, the contract value may exceed 5% of Lumi’s 2024 total revenue, depending on issued purchase orders. The two-year agreement, which can be extended, is expected to positively impact Lumi’s financials starting Q3 2025.

Top gainer and top loser Halal stocks in Saudi Arabia

Economic updates

  • Saudi Arabia has signed over $300 billion in deals with the U.S., Crown Prince Mohammed bin Salman confirmed at the Saudi-US Investment Forum in Riyadh. He highlighted that the Kingdom is eyeing $600 billion in investment opportunities, with a target of reaching $1 trillion. The U.S. remains one of Saudi Arabia’s key partners in the Vision 2030 reform agenda, with joint investments forming a core pillar of bilateral economic ties.
  • Saudi Arabia reported a Q1 2025 budget deficit of $15.6 billion, driven by a 17.7% drop in oil revenues due to ongoing OPEC+ production cuts, despite steady global prices. Oil income made up 56% of total revenue, down from 62% a year ago. Overall revenue fell 10.2% year on year to SR263.6 billion, while spending rose 5.4% to SR322.3 billion, reflecting continued investment in Vision 2030 projects.
  • Saudi Arabia’s Asir region has secured a new investment boost of $1.06 billion (SR4 billion), bringing the total value of government-backed projects in the area to over $6.6 billion (SR25 billion), as announced at the Asir Investment Forum in Abha. This surge supports the Asir Region Development Strategy, the Kingdom’s first regional development plan, aimed at transforming Asir into a major tourism hub attracting over 10 million visitors annually by 2030.
  • Saudi Arabia has increased wage subsidies for Saudi nationals in the tourism sector from 30% to 50%, aiming to boost local employment and reduce reliance on foreign labor. The move, part of the Human Resources Development Fund’s Employment Support Program, covers 43 tourism-related professions and supports the Ahlaha workforce empowerment initiative.

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