Saudi Tadawul Group Sees 41% Drop in Q3 Profit to $22 Million as Trading Slows

Saudi Tadawul Group Sees 41% Drop in Q3 Profit to $22 Million as Trading Slows

The Saudi Tadawul Group, the operator of the Saudi stock exchange, reported a sharp fall in its third-quarter 2025 profit. The company’s net profit dropped by 41% to $22 million (SAR 82.7 million), compared to $37.4 million (SAR 140.4 million) during the same quarter last year, according to its filing on the Saudi Exchange.

Lower Trading Affects Revenue

Tadawul’s operating revenue also went down by 11.5%, reaching $84.7 million (SAR 317.8 million) in the third quarter. A year earlier, it had earned $95.7 million (SAR 359.1 million).

The main reason for this decline was lower income from trading and post-trade services. The average daily value of traded shares fell by 26.9%, which had a strong impact on revenue. However, the company saw a small improvement in non-trading revenues, which grew 7.1%, helping to reduce the overall decline.

Nine-Month Performance

For the first nine months of 2025, Tadawul’s performance also weakened. The group’s net profit after zakat fell by 40.8% to $80 million (SAR 299.4 million), compared to $134.8 million (SAR 505.7 million) in the same period of 2024.

Its operating revenues for the nine months dropped 12.3%, reaching $257 million (SAR 964.9 million), down from $293 million (SAR 1.1 billion) a year earlier. This decrease was again linked to slower trading activity, with the average daily traded value falling by 31.3%.

Despite weaker trading, the group’s non-trading services—which include data services and technology-related income—rose 10.6%, offering some balance to the overall decline.

Because of these results, Tadawul’s earnings per share (EPS) dropped by 40.8% to $0.67 (SAR 2.50), compared to $1.12 (SAR 4.21) in the same period of 2024.

Company Overview

The Saudi Tadawul Group, based in Riyadh, plays a key role in the Kingdom’s financial market. It operates through four main subsidiaries, each focusing on a specific area of the capital market:

1. Tadawul (Saudi Exchange) – The main stock exchange where shares of Saudi companies are traded.

2. Muqassa (Securities Clearing Center Company) – Handles the clearing and settlement of securities transactions.

3. Edaa (Securities Depository Center Company) – Manages the registration, deposit, and transfer of securities.

4. WAMDH (Tadawul Advanced Solutions Company) – Focuses on providing technology-driven financial and data services.

Together, these companies support the smooth operation and innovation of the Saudi financial market.

Market Context

The decline in Tadawul’s profits reflects slower market activity in Saudi Arabia during 2025. Many investors have been cautious due to global economic uncertainty, changes in oil prices, and regional market conditions.

Despite these challenges, Tadawul continues to expand its non-trading services, aiming to reduce its dependence on daily trading volumes. The company is also investing in digital and technology solutions through WAMDH to create new revenue streams in the future.

Overall, while the short-term results show a drop in profit, Tadawul’s focus on diversification and innovation could help strengthen its position in the coming years.

Published: 27th October 2025

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