Emerging market stocks have rebounded strongly over the past year, while the Saudi stock market has lagged far behind. Investors said they don't expect much of an improvement in the situation next year. Given that oil prices are sluggish and likely to continue falling next year, and commodity trader Tock Group predicts a “super oversupply”, investors see few reasons to buy Saudi stocks. Citigroup analysts advised investors to reduce their holdings in Saudi stocks and said these stocks “did not perform well” in terms of profit growth and development momentum. “Saudi stocks are still unattractive,” said Nenad Dinick, an emerging market equity strategist at Bausheng Bank of Switzerland. “First, the Saudi stock market is still closely linked to oil prices, and oil prices are likely to remain weak in 2026; second, unlike most other emerging market stocks, the Saudi stock market cannot benefit from the weakening dollar.” The Saudi Stock Exchange Composite Index has fallen 11% this year, the biggest drop since 2015.

Emerging market stocks have rebounded strongly over the past year, while the Saudi stock market has lagged far behind. Investors said they don't expect much of an improvement in the situation next year. Given that oil prices are sluggish and likely to continue falling next year, and commodity trader Tock Group predicts a “super oversupply”, investors see few reasons to buy Saudi stocks. Citigroup analysts advised investors to reduce their holdings in Saudi stocks and said these stocks “did not perform well” in terms of profit growth and development momentum. “Saudi stocks are still unattractive,” said Nenad Dinick, an emerging market equity strategist at Bausheng Bank of Switzerland. “First, the Saudi stock market is still closely linked to oil prices, and oil prices are likely to remain weak in 2026; second, unlike most other emerging market stocks, the Saudi stock market cannot benefit from the weakening dollar.” The Saudi Stock Exchange Composite Index has fallen 11% this year, the biggest drop since 2015.