Saudi Stock Exchange and Vision 2030 .. Who is the top and who stumbles?

Since Saudi Arabia launched the ambitious “Vision 2030”, the financial market has a similar process of ‘redistribution of wealth’, not only the performance of companies, but also recycled the profit card and spread the growths between the listed sectors. In just eight years, the collected profits of the listed companies – with the exception of giant Aramco – rose from 94.7 billion Riyals to 160.7 billion. But behind these golden numbers lies a remarkable paradox: Only 3 sectors were responsible for almost half of this growth. Before diving in the sectors, “Aramco” of this analysis was excluded because of the large scope and a major impact on the market, as the company’s profits in 2024 amounted to approximately 394 billion Riyals, equivalent to more than twice the total profits of the rest of the listed companies. Consequently, the inclusion of “Aramco” within public accounts can hide the actual differences between the performance of other sectors. Although total numbers show remarkable growth in the market profit, the depth view shows a serious difference between companies that have led the wave of growth and those that remain on the margin, despite the expansion of economic activity and the increase in the number of listed companies. From the end of 2016 to end 2024, the most important Saudi Stock Exchange “Tassi” achieved 67%profits, up to 12036 points. During this period, in 2020, a milestone formed a milestone, as Corona’s pandemic struck the global economy and caused comprehensive closures that paralyzed the movement of markets and led to a sharp drop in oil prices. These developments were reflected in the Saudi Market, where “Tassi” dropped to 5960 points in mid -March 2020, after being in the level of 8500 points early. It should be noted that the ‘Saudi Trade’, the operator of the financial market, restructuring the market sectors and companies in early 2017 in accordance with the targets of the National Transformation Program 2020 and the Kingdom’s 2030 vision, based on the Unified World ranking, according to the company. Banks: Integration and impulse contributed to large strategic mergers, between the “National Bank” and “Samba”, as well as “Sabb” and “the first”, to push the profits of the banking sector with approximately 38.3 billion Riyal in the period, supported by a collective improvement in the results of large banks, led by all Sultan Al -Tuwim, head of financial research in Al -Rajhi Financial, told Al -Sharq in States that the banking sector has benefited from the boom in real estate financing, as well as an expansion in financing small and medium -sized enterprises, driven by the momentum of major projects in the kingdom. This momentum was sustained during the year 2025 with the support of Vision 2030 Investments, and the kingdom’s readiness to host the ‘Expo 2030’ and the 2034 World Cup. Mohamed Saleh, the financial advisor in the Innovation of Value’s office, pointed out that the environment of high interest investors has urged to elect the debt instruments, but the banks have managed to expand their profits that benefit from organizational reforms and the demand for financing, as well as the acceleration of digital transformation. Communication: The bet on digitization pays its fruit. Although these exceptional profits are excluded, the growth rate remains high at about 104%. This achievement is attributed to early expansion in the fifth generation networks and policy for the digitalization of government, in addition to increasing the spending on infrastructure infrastructure, according to “Al -Rajhi Financial”. It expects the sector to continue its momentum during the coming period, and the expansion of companies between each other (B2B) will utilize, which improve the infrastructure of optical fibers, a high demand for artificial intelligence technologies, data centers and wool computer science. Food production: Food Security Refresh Profits, the Profits of the Sector have recorded a large growth of 14.3 billion Riyals, an increase of about 6 times compared to 2016. 81% of this growth, however, is due to unacceptable profits from the sale of “SAVOLA” for its share in the “pasture”. After these profits are excluded, growth drops to 31%. Sultan Al -Tuwim, the head of financial research at Al -Rajhi Financial, attributed this achievement to the Kingdom’s focus on strengthening “food security” and expanding its local food capabilities. The data of the General Statistics Authority show that the care rates in 2023 amounted to about 129% in dairy, 100% in eggs, 71% in poultry and 61% in red meat. Al -Rajhi Financial expects the sector to continue to achieve growth with the support of the continued government focus on food security, with plans to expand the production of poultry and red meat, as well as the development of baked goods, juices and dairy products. Technology … The emerging star despite its modernity, as it did not stand before 2017, the technological sector managed to register profits that were more than 3.7 billion rows during the year 2024, driven by strong performance of large companies such as “solutions by STC” and “Alam”. This leap is identified with digital transformation programs that are one of the vision pillars. Al-Rajhi Financial indicated that the acceleration of government transactions had accelerated after the Kofid-19 pandemic, as well as major spending on information technology, contributed to the consolidation of the sector’s position as one of the growth cars in the national economy. It expected the Kingdom to host global opportunities such as “Expo 2030” and the World Cup, in addition to huge projects, to improve demand for digital services, especially in tourism, healthcare and artificial intelligence sectors. Surprises of growth: Sectors of Extraordinary Leap Record Capital Goods: The profits jumped by 2336%, thanks to the inclusion of companies such as “Riyadh cables” and extraordinary profits for “Amianite”. Investment and Finance: The profits grew by 827% with the support of the inclusion of the ‘trading group’, and the ‘Kingdom Holding’ changes from losses to profits of more than one billion Riyals. Healthcare: The profits rose by 586%, supported by the inclusion of “Suleiman Al Habib”, which makes up half of the gains of the sector. Al-Rajhi Financial said the hospital sector was an improvement to the Kofid-19 pandemic, due to interest in public health and the increase in employment between the Saudi. The compulsory medical insurance was one of the most important engines of the request. Al -Rajhi Financial expects the health sector to continue to grow, driven by an increase in the number of insured and the expansion of the health sector in general. Sectors lost despite the momentum on the other side of the scene, traditional sectors recorded a sharp drop in profits: Basic materials: Profits were 16.3 billion Riyal (60%), influenced by the decrease in “sabian” gains by 91% and the gains of cement companies fell. Public Facilities: Although the number of businesses has doubled, the sector’s profits fell by 92% due to the continued losses of “Saudi electricity”. Energy (Don Aramco): It was influenced by the losses of “Petrorab”. Consumer Services: Returned with poor results for “Serra” and “Herfy”. Property: The profits have decreased with the continued obstacle of the “economic city economy”, owned by the Public Investment Fund, with 25%, and the “Red Sea International” business. Financial advisor Mohamed Saleh believes that these results – especially in the basic materials sector – reflect what he described as ‘the bottom of an investment cycle’, and expected the recovery to return, but he admitted to needing some time. Abdul Rahman Al -barghouthi, a first research analyst in “Riyadh Financial”, explained from his side that the cement sector recorded a reduction in turnover by 5.9% during the year 2024, despite the increase in sales volume by about 594 thousand tons to 55.622 million tons. This decline in revenue has printed the net profits, which dropped from 4.5 billion Riyals to 2.7 billion Riyals, due to high cost and low prices. Al -Barghouti said: We take note of an increase in local demand for cement by the end of 2024, and we expect the momentum to continue in 2025, especially in the central region, with the support of Vision 2030 and the increase in real estate loans. The increase in the number of arrivals to the kingdom for the purpose of work and tourism increases the demand for housing and infrastructure projects. He added that energy prices could form a print factor, but the expected increase in cement prices could contribute to the compensation for this effect. Sectors have recorded growth without the sound of insurance: The profits of the sector increased by 76% to 3.7 billion Riyals, despite the removal of 8 companies, with the support of increasing demand for vehicles insurance after women allowed to manage growth in health insurance, according to Al -Rajhi Financial, which is expected. Pharmaceutical industries: The profits rose to 461 million Riyale in 2 024 a 67%growth, after two new businesses are included. Pay to include two new businesses in the market. Al -Rajhi Financial indicated that the increase in the demand of the government, especially by the company “Nobco”, in addition to expanding generic medicine production, had a major role in this growth. It is also expected to continue to expand to the Gulf Collaborative Council countries markets. It is noteworthy that the ‘Nobco’ owned by the Public Investment Fund is about providing purchase, storage and distribution services for medicine and medical supplies in the kingdom. Growing in 2025 … Where does the next momentum come from? Between those who have led the profitability march and who are waiting for the opportunity to return, the Saudi financial market remains in the event of a deep rebuild. “Vision 2030” not only redistributes the role of sectors, but also redefines the concept of growth itself, in a market whose dynamics are more related to the most important reforms and transformations, including traditional courses. Analysts expect the ongoing growth in the direct related sectors with “Vision 2030”, such as technology, banks, healthcare, cement, communication and pharmaceutical industries, especially in the central region, with real estate projects that expand and increase the demanding rates. Financial adviser Mohamed Saleh suggests that “the upcoming transformations will take up the market card”, indicating the escalation of the importance of new sectors such as tourism, entertainment, education, logistics services and aviation, as future tributaries for growth within the renewed Saudi economy system.