Downside risks to Saudi equities are high

By most measures, Saudi stocks appear to be undervalued by up to 30%. Recent earnings data have also beaten analysts’ estimates and expectations for profit growth are strong leading many to suggest that the TADAWUL index could soon exceed the 10,000 mark, up from around 7,500 currently. But if our oil price and global growth forecasts are right, the performance of Saudi stocks could ultimately disappoint.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.