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Saudi Exchange (Tadawul) and the 2019 Aramco IPO
Tadawul 2007; Aramco IPO Dec 2019· Institution or agency
Fact, law or dataA rule, statute, definition or measured number.
Saudi Arabia's stock exchange, the largest in the Middle East, and home of oil giant Aramco since its record December 2019 IPO.
See it on the Money & Finance map →How it works
Saudi shares traded informally for decades; the exchange company Tadawul was set up in 2007 and renamed Saudi Exchange in 2021. Foreign institutions have been allowed to buy directly since 2015, and MSCI added Saudi shares to its emerging-markets index in 2019. The market was worth about $2.4–2.6 trillion in 2025–26, with Aramco well over half. Banks, petrochemical makers, telecom firm STC and miner Ma'aden are the other heavyweights.
Why it matters
Listing Aramco and opening the market are part of Vision 2030, the plan to diversify the economy and fund the PIF; the index still tracks oil prices.
Facts, rules and data
Saudi Exchange statistical reports, Aramco's prospectus and filings, Capital Market Authority rules on foreign investors, and MSCI index announcements.
Debates and risks
Whether the market can deepen beyond state-linked giants and oil, and how much more of Aramco the government will sell.
Connections (3)
▸Saudi Arabia's Public Investment Fund (PIF) holds big stakes in top companies on Saudi Exchange (Tadawul) and the 2019 Aramco IPOFact, law or data
The connection
The PIF owns large stakes in many of the top Saudi-listed companies: about 16% of Aramco with its subsidiary Sanabil, plus big holdings in Saudi National Bank, telecom firm STC and miner Ma'aden. It also lists portfolio companies on Tadawul to raise cash and deepen the market, so state ownership shapes the index.
When and why
Riyadh; the state moved Aramco shares to the PIF and Sanabil in 2022, 2023 and March 2024, under Crown Prince Mohammed bin Salman's Vision 2030.
How we know
Tadawul shareholder disclosures, Aramco and PIF announcements of the share transfers, and PIF annual reports listing its holdings.
Debates and risks
Whether heavy state ownership limits free float and foreign interest, and how the PIF's cash needs will shape future share sales.
▸Saudi Exchange (Tadawul) and the 2019 Aramco IPO hosted the record 2019 Aramco Initial public offerings (IPOs)Fact, law or data
The connection
Aramco sold 1.5% of its shares on Tadawul in December 2019 at 32 riyals each, raising $25.6 billion, and $29.4 billion with an over-allotment option: the largest IPO ever, beating Alibaba's $25 billion in 2014. Most buyers were Saudi and Gulf investors after foreign demand proved weak at the $1.7 trillion valuation.
When and why
Riyadh, trading from December 11, 2019; the state kept about 98.5%, and a June 2024 follow-on sale raised about $11–12 billion.
How we know
Aramco's prospectus and stabilization notices, Tadawul records, and league tables from Dealogic and LSEG.
Debates and risks
Whether the valuation was truly market-set, given pressure on locals to buy, and whether future state sales will find foreign buyers.
▸Saudi Exchange (Tadawul) and the 2019 Aramco IPO rises and falls with WTI and Brent: the oil price benchmarks on NYMEX and ICEMainstream view
The connection
Saudi Aramco is the largest company on Tadawul, and oil revenue funds the government spending that drives Saudi banks, builders and consumers. So when Brent rises, Saudi earnings, budgets and liquidity improve and the main TASI index tends to rise; when oil falls, spending cuts and weaker sentiment usually follow.
When and why
Riyadh; oil provides well over half of Saudi government revenue, and Aramco has been listed on Tadawul since December 2019.
How solid is the link?
Correlation studies of TASI and Brent prices, Saudi finance ministry budget data, and IMF Article IV reports on Saudi Arabia.
Debates and risks
The link is loose day to day; government support, dividend payouts and Vision 2030 spending can move Saudi stocks independently of oil.