Saudi Arabia Loses $176 Billion in Market Value in Two Months

The Saudi stock exchange has lost $176 billion of its market value since the end of last August, according to a calculation published by Arabian Gulf Business Insights and cited by Yemen Eco on Saturday, October 24, 2026. The Saudi market index fell to its lowest level in over five years following a 2.3% decline on Thursday, bringing its total drop since the beginning of October to 7%.

The report explained that the losses came as attacks on the Kingdom escalated, heightening security concerns and prompting investors to reduce their exposure to the Saudi market. The Kingdom's banking sector fell by 4% last week, while real estate sector stocks dropped 8%, healthcare 7%, and telecommunications 4%.

Sales and trading volume on Thursday reached its highest level since October 10, signaling growing selling pressure. The same website revealed days ago that foreign investors were net sellers of nearly $2 billion worth of Saudi equities from the beginning of September through October 15.

These losses come at a time when markets are monitoring the impact of security tensions on government spending and listed companies' earnings. The continuation of foreign selling and declining risk appetite will determine whether the market recovers part of its losses in the coming weeks.

What Do These Terms Mean?

Market Capitalization: The value of all listed stocks in the market calculated at their current prices, changing with price movements and the number of shares.

Market Index: A figure combining the prices of a group of listed stocks, showing the general market trend upwards or downwards.

Net Foreign Selling: The difference between the value of what foreign investors sold and what they bought, which is negative when sales exceed purchases.