2011 witnessed a huge wave of political turmoil in the MENA region, which has reflected on the performance of all the stock markets. Today we’re going to focus on the Saudi Tadawul stock market. Tadawul has lost 11% since the tension first began in Tunisia- the beginning of the political unrest. The market has rebounded this week after shedding 20% in the two weeks following the mid-February riots in Bahrain.
On March 5th , Al-Arabiya news reported that Mr. Ibrahim Al-Assaf, Saudi Finance Minister, said that prices in Tadawul are attractive and that the Saudi Public Pension Agency bought shares last week.
Saudi is embarking on solid reform steps with its $36 billion spending plan. The plan will be setting minimum wages for Saudi nationals, providing housing and benefits for the unemployed, and approving a legal framework to govern property ownership by GCC nationals.
Tadawul surged to a two week high as no signs of internal Saudi protests emerged and the government became an aggressive buyer in the stock market. Tadawul increased by 3.3%, reaching 5,950 yesterday.
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