The Saudi stock market recorded an increase of more than 30% since the beginning of the year 2021 until the end of last August, which ended trading at 11,319.24 points, compared to the level of the index at the beginning of the year's trading at 8,689.53 points.
According to Arabiya Net, Fadi Arbid, co-founder and director of investments at Amwal Capital Partners, said that the Saudi market is one of the most emerging markets that has achieved gains, as the MSCI Market Index The emerging market achieved an increase of 1%, but the Saudi market and the Abu Dhabi market rose by 30 and 50%, respectively, since the beginning of the year.
He explained that the rise of oil was not a driver for the rise of the Saudi market, but it gave confidence to investors, noting that corporate profits were a driver in light of the high profit margins that they achieved.< /p>
With regard to the multiples of profitability, Arbid said that the repeater in Saudi Arabia over 12 months reached 27 times, compared to the historical repeat between 20 and 23 over 10 years, and compared In the MSCI Emerging Markets Index, which reached its profitability multiple of 16 times, compared to the historical multiple of 15 times.
He explained that the declines witnessed by the Saudi market in the last sessions of August might constitute a correction for the market, especially with low trading volumes.
He stated that there is a recovery in IPOs in Saudi Arabia, at a large rate that the market has not witnessed since 2012 and 2013, a period that witnessed an offering almost every month.
