The Saudi stock market was rocked on Sunday, plunging by nearly 7% in what state media are calling the kingdom’s worst trading day since the early days of the COVID-19 pandemic.
The sharp decline comes on the heels of U.S. President Donald Trump’s sweeping new tariffs that have triggered a wave of panic across global financial markets.
According to Saudi state-run broadcaster Al-Ekhbariya, the Tadawul All Share Index closed down 6.78%, shedding over 800 points in a single day. The network described it as “the largest daily loss in five years,” sending shockwaves across all major sectors—from energy and banking to telecommunications and utilities.
The sell-off was particularly painful for Saudi Aramco, the crown jewel of the kingdom’s economy. The oil giant saw its shares tumble by 6.2%, with its market value shrinking by more than 340 billion riyals (roughly $90 billion), according to state-run financial daily Al-Eqtisadiah.
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Overall, the Saudi market lost more than half a trillion riyals—approximately $133 billion—in value during Sunday’s trading session. “Trump’s tariffs weighed heavily on global markets, and specifically today on Saudi markets,” Al-Ekhbariya reported.
The losses were widespread across sectors: Utilities dropped by 8.4%, Banking fell 6.9%, Telecommunications declined 5.9% and Energy dipped 5.29%
Saudi Arabia wasn’t alone in feeling the ripple effects of Trump’s tariff escalation. Gulf markets across the region mirrored the downturn. Kuwait’s primary index slid 5.7%, Qatar’s exchange dropped 4.2% and Oman’s Muscat market fell 2.6%.
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Markets in Abu Dhabi and Dubai remained closed for the weekend, though the regional mood suggests they, too, may face a rocky return when trading resumes.
Globally, Trump’s trade offensive has stirred fears of a full-blown trade war and even a potential recession. Stock exchanges across Europe and Asia closed lower on Friday, and analysts are bracing for more volatility when markets reopen on Monday.
Investors, economists, and policymakers are watching closely to see how deep the damage will go. With global supply chains already fragile and inflationary pressures building, uncertainty around trade policy is proving to be a potent disruptor—not just for U.S. rivals, but for its allies and key economic partners as well.
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