Saudi capital markets cooled in 2Q: Capital raised from stock offerings, excluding capital hikes, on Tadawul and Nomu showed only a small y-o-y uptick in 2Q 2025, while new public debt issues stayed thin in terms of both value and volume compared to the same period last year, according to the Capital Market Authority’s (CMA) latest quarterly bulletin (pdf).

ON EQUITY-

A modest pick-up over 2024, but well shy of early 2025 highs: Tadawul’s main and parallel markets were home to 13 public equity offerings in 2Q 2025, compared to 12 in 2Q 2024, pulling in a total of SAR 25.6 bn — a modest c.4% y-o-y gain. This marks a step down from 1Q 2025, when an equal number of public share sales raised a total of SAR 42.6 bn. Tadawul’s total market cap slipped to SAR 9.1 tn in 2Q 2025 from SAR 10.1 tn in the same period a year earlier.

Private placements came in at SAR 600.5 mn across four transactions in 2Q, up from SAR 348.4 mn across six transactions in the same quarter a year earlier.

Nomu continues to carry the weight of new listing activity. The CMA approved six IPOs in the parallel market in 2Q, bringing the YTD tally to 15, versus three IPOs on the main market in 2Q and 8 in 1H. Another 51 offerings were still under review at the quarter’s close, including 19 on the main market and 32 on Nomu.

Institutional ownership sustains its dominance: Institutions held 95.2% of total market cap in 2Q, with their holdings valued at SAR 8.7 tn, down y-o-y from 9.6 tn (95.6% of SAR 10.1 tn).

Meanwhile, Saudis piled into Wall Street: Trading in US equities by Saudi investors hit a record SAR 193.4 bn in 2Q, up 230% y-o-y, followed by Gulf markets at SAR 2.2 bn. The surge contrasts with a 27% y-o-y drop in local stock trading, underscoring how global exposure is rising as Tadawul volumes shrink.

ON DEBT-

Debt capital market stalls as private credit takes the reins: Debt issuance remained muted in the second half of the year, with just one debt instrument pulling in SAR 50 mn; no debt sales were recorded on the capital market in the same period last year. Private debt placements jumped to SAR 12.2 bn across 32 issuances in 2Q, up sharply from SAR 2.8 bn across 12 issuances in the same quarter last year.

IN CONTEXT- Why corporates are leaning heavily on private debt: With Tadawul under pressure, IPO windows narrowing, and public market liquidity thinning, borrowers may be turning to private channels for faster execution and more flexible structures. Investors, meanwhile, are chasing secured returns in a high-rate environment, making private credit the path of least resistance for funding Saudi corporates.

TASI VERSUS NOMU-

TASI averaged 11.2k points by the end of 2Q, slipping from 11.7k in the same period last year, underscoring the index’s weaker run. Value traded came in at SAR 325.5 bn in 2Q, down from SAR 447.5 bn in the same quarter last year, while average daily turnover on the main market reached SAR 5.5 bn in 2Q, down from SAR 8.1 bn a year earlier.

Meanwhile, Nomu averaged 27.3k points in 2Q 2025, slightly above its 26.1k level in the same period last year. Value traded was at SAR 2 bn in 2Q, down from SAR 2.7 bn in the same quarter last year. Average daily turnover on the parallel market came in at SAR 33.8 mn in 2Q, down from SAR 49.1 mn in 2Q 2024.

ICYMI- Tadawul’s 1Q rebound came before markets turned sour, offering a pre-crisis snapshot. By May, the strain was clear, and Tadawul’s benchmark TASI shed 4.8% in its worst month this year, ranking as the weakest performer among 92 global peers tracked by Bloomberg. The sell-off, driven by oil slipping toward USD 65 a barrel, fiscal jitters over giga-projects, the Israel-Iran conflict, and US tariff threats, left just 23 of 253 companies in the green.

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