Riyadh, Saudi Arabia – The Saudi stock market suffered its sharpest single-day decline in five years on Sunday, as global financial markets reeled from the sweeping trade tariffs imposed by U.S. President Donald Trump.
According to official data, the Tadawul All Share Index (TASI) plunged 6.78%, wiping out over 800 points in a single session. The state-run Al-Ekhbariya TV described it as “the largest daily loss since the early days of the COVID-19 pandemic.”
The sell-off comes amid heightened fears of a global trade war, following Washington's implementation of a 10% baseline tariff on all imports, with more severe levies of up to 50% expected to hit targeted nations—including key oil exporters and trade partners—later this week.
Global Ripple Effects from Trump's Tariff Wave
President Trump’s tariff strategy has shaken investor confidence worldwide. Major U.S. and European indices also recorded steep losses, while Asian markets followed suit. The Saudi exchange, heavily weighted with energy and petrochemical stocks, was particularly vulnerable to geopolitical and trade-related shocks.
Market analysts in Riyadh attributed the losses to “panic selling,” as investors anticipate reduced export demand and foreign investment amid escalating global tensions.
“The markets are pricing in uncertainty, and oil-linked economies like Saudi Arabia are feeling the brunt of it,” said Faisal Al-Jadaan, an independent financial analyst based in the Kingdom.
Oil, Energy Stocks Lead the Decline
Energy giants and petrochemical firms led the slump, as concerns grew that global tariffs and retaliatory measures could dampen industrial activity and suppress oil demand.
Despite recent oil price stability, investor sentiment in the Gulf region remains fragile. Sunday’s decline marks a major reversal for Saudi Arabia’s stock market, which had seen steady gains earlier in the year driven by state-backed investments and Vision 2030 initiatives.
Regional Concerns Mounting
Other Gulf markets, including those in Dubai, Qatar, and Kuwait, also saw red on Sunday, though none matched the magnitude of Saudi Arabia’s losses. Regional investors are closely watching how governments will respond to U.S. tariffs and whether any coordinated economic action will be taken.
With the U.S. being a major trade partner and security ally to Gulf nations, the latest escalation adds a layer of complexity to ongoing diplomatic and economic strategies across the Middle East.
