Revealed: Top 10 companies in Saudi Arabia in 2018

Saudi Arabia’s Tadawul, which had a good first half registering double digit gains consequently pared down its gains as the news of much awaited Saudi Aramco IPO was put on hold.

The recovery of oil price, which has now more than doubled since its low in 2016, and successful issuance of bonds to raise capital from international markets has enabled Saudi Arabia to better manage its finances.

For most of this year, Saudi Arabia has been a favourite among investors, largely because of Saudi Arabia’s inclusion into the MSCI emerging markets index.

Debt market

Since the decrease in oil revenues, following the precipitous price plunge in mid-2014, Saudi Arabia has been one of the biggest bond issuers in emerging markets, beginning with its sale of dollar bonds in 2016. It raised $21.5bn in 2017 and $17.5bn in 2016, and plans to borrow the equivalent of $31bn this year to bridge the expected budget deficit of $52bn and to fund growth plans after its economy shrank last year.

Furthermore, Saudi Arabia has raised $2bn in new Sukuk, or Islamic bonds, completing its external funding requirements for 2018.

TOP 10 SAUDI ARABIAN COMPANIES BY MARKET CAP
(By market capitalisation as of September 11, 2018. Source: Reuters Eikon, Markaz Research)

 1. Saudi Basic Industries Corporation (SABIC)

Market capitalisation: $95.18bn

Sector: Chemicals

Change in ranking: 0

2. Saudi Telecom Company (STC)

Market capitalisation: $44.15bn

Sector: Telecommunication

Change in ranking: 1

3. Al Rajhi Banking & Investment Corporation

Market capitalisation: $36.18bn

Sector: Banking and Financial Services

Change in ranking: 0

4. National Commercial Bank

Market capitalisation: $32.79bn

Sector: Banking and Financial services

Change in ranking: 0

5. Saudi Electricity Company

Market capitalisation: $18.89bn

Sector: Utilities

Change in ranking: 0

6. Saudi Arabian Mining Co (Maaden)

Market capitalisation: $15.73bn

Sector: Chemicals

Change in ranking: 2

7. Samba Financial Group

Market capitalisation: $15.49bn

Sector: Banking and Financial Services

Change in ranking: 5

8. Almarai Co

Market capitalisation: $14.05bn

Sector: Food and Beverages

Change in ranking: 0

9. Saudi British Bank

Market capitalisation: $12.94bn

Sector: Banking and Financial Services

Change in ranking: 5

10. Riyad Bank

Market capitalisation: $12.48bn

Sector: Banking and Financial Services

Change in ranking: 6

Also read: Revealed: Top 10 companies in the UAE in 2018