Saudi Stocks Trail Emerging Peers for First Time Since Pandemic
- Geopolitics, oil and tempered Neom plans weigh on Tadawul
- Concern Fed won’t rush to cut rates is also dimming appetite
The Saudi Stock Exchange in Riyadh.
Photographer: Mohammed Almuaalemi/BloombergThis article is for subscribers only.
Saudi stocks are lagging emerging-market peers for the first time since the pandemic as tensions in the Middle East mount and the kingdom dials down plans for a sprawling desert construction project.
The Tadawul All Share Index is nearly 6% behind the MSCI Emerging Markets gauge so far this year, the first time it’s trailed in the period since 2020 when tumbling demand battered oil prices. Once again, Saudi shares are tracking a drop in crude, while authorities have reportedly scaled back the futuristic Neom development — a major driver for several sectors in the market in the past few years.