Here are 10 of the best Saudi stocks to watch in 2023 and beyond, as well as an alternative to chasing Saudi stocks to invest.
There are literally thousands of publicly traded companies you can invest in, not to mention the many exchange-traded funds (ETFs) you can buy, so it's not surprising many investors don't know where to begin.
Before we get to the stocks, let's acknowledge three caveats:
- Choosing the best Saudi stocks to invest in today heavily depends on your personal financial situation. To get a feel for where you stand, read our guide on how to invest in stocks. It walks you through the process of screening stocks, allocating assets, and when it makes sense to buy shares of stock.
- These stocks are considered long-term investments. If inflation stays elevated longer than expected, interest rates continue to rise, the uncertainty facing the banking system in 2023 persists, or some large economies fall into a deep recession, it's entirely possible that most or all of these could decline in the near term.
- The list below isn't meant to be exhaustive one. Instead, they're long-term Saudi stocks that worth considering for 2023 and beyond. One of the one-step ways to diversify your holdings is to build the core of your portfolio around something like the iShares MSCI Saudi Arabia ETF (KSA).
Let's get to the list of the 10 best Saudi stocks to buy now and hold for the long term, based on analysts' coverage and the latest Saudi stock price predictions.
The 10 Best Saudi Stocks to Invest in September 2023
Some of the best Saudi stocks to buy in 2023 take into consideration strong business fundamentals, robust earnings profiles, and the capacity to rebound once the market regains momentum.
- Aramco (Tadawul: 2222)
- Al Rajhi (Tadawul: 1120)
- Alahli Tadawul: 1180)
- SABIC (Tadawul: 2010)
- STC (Tadawul: 7010)
- Maaden (Tadawul: 1211)
- RIYAD (Tadawul: 1010)
- SABB (Tadawul: 1060)
- Alinma (Tadawul: 1150)
- Banque Saudi Fransi (Tadawul: 1050)
The Saudi stocks highlighted on this list are sourced from industry analysts, but they may not be a perfect fit for your portfolio. Before you decide to purchase any of Saudi stocks listed based on third party price predictions, do plenty of research to ensure they are aligned with your financial goals and risk tolerance. You should know also the Past performance and forecasts are not reliable indicators of future results.
1. Aramco stock (Tadawul: 2222) - Overall, one of the best Saudi stocks to hold
Aramco is a global petroleum and gas company based in Saudi Arabia. It went public in 2019 with the largest IPO in history. Today, Aramco is listed on the Saudi Stock Exchange and is among the world's most valuable companies and one of the best Saudi stocks. Aramco shares are held by a diverse range of investors and are included in various stock indices and some of the best ETFs for 2023.
Analysts suggest that Aramco stock will grow 10.65% in the next three months and reach 37.17 SAR level, and 53.41% by the end of 2023 to reach 51.54 SAR level. In the next 5 years, this top Saudi stock is expected to grow 174.15% and reach the 92.11 SAR level.
2. Al Rajhi stocks (Tadawul: 1120) - The most popular Saudi bank stocks
Al Rajhi Bank, one of the largest Islamic banks globally, offers a wide range of banking and investment services in Saudi Arabia. Its shares (ticker symbol: 1120) listed on the Saudi Stock Exchange are favored by domestic and international investors. Considered one of the best stocks in the Saudi market, it is a popular holding in international ETFs tracking the Saudi stock market, such as the iShares MSCI Saudi Arabia ETF (KSA).
Analysts suggest that the price of Al Rajhi stock will grow 6.05% in the next three months and reach 80.21 SAR level, and 15.92% by the end of 2023 to reach 87.51 SAR level. In the next five years is expected to reach 134.26 SAR level, up 77.84% from the actual price.
3. Alahli stocks (Tadawul: 1180) - One of the best Saudi bank stocks to watch in 2023
Established in 1953, SNB is a leading financial institution offering diverse banking and investment services. With its shares listed as "1180" on the Saudi Stock Exchange, this Saudi stock is widely held by domestic and international investors, and its inclusion in global ETFs highlights its popularity in the Middle Eastern banking sector.
Analysts suggest that the price of Alahli stock will grow 14.50% by the end of the 2023 and reach 41.91 SAR level, and 64.67% in the next five years up to 60.27 SAR.
4. SABIC stocks (Tadawul: 2010) - One of the best Saudi stocks in the chemical industry
With a strong financial performance and a diverse product portfolio, SABIC became a top Saudi stock in the last few years. The strategic global partnerships solidified its position in the chemical sector and attracted investors' attention worldwide.
Analysts suggest that the price of SABIC stock will grow slightly with 0.65% by the end of the 2023 and reach 92.20 SAR level. However, SABIC was listed as one of the best Saudi stocks to buy for 2023 based on its global standing in the chemicals sector.
5. STC stocks (Tadawul: 7010) - one of the best telecom stocks in the Saudi markets
Saudi Telecommunication Company is the digital enabler of telecommunications services in the Kingdom of Saudi Arabia, and among the top operators in the Middle East. Expanding operations and investments in 5G networks, boosted STC stock price in the last years among other considerations, and made it one of the most popular Saudi stocks for local and international funds.
Analysts suggest that the price of STC stock will grow slightly with 2.03% by the end of 2023 to reach 44.68 SAR level.
6. Maaden stocks (Tadawul: 1211) - one of the best Saudi mining stock
Ma'aden, a Saudi mining and metals company founded in 1997, operates globally in various segments, including mining, infrastructure, aluminum, and phosphate. With a diverse product portfolio and focus on innovation, sustainability, and strategic partnerships, the company maintains its leading position in the industry while expanding its operations worldwide. Ma'aden stock shows a stable uptrend and become one of the most desired Saudi stocks.
Analysts suggest that the price of Maaden stock will decline slightly with -1.59% in the next three months and reach 68.00 SAR level, but will grow 16.33% by the end of 2023 and reach 80.38 SAR level. However, the stock price is expected to increase by 84.70% in the next five years and reach 127.62 SAR level, which is one of the bullish predictions among the top Saudi stock listed here.
7. RIYAD stocks (Tadawul: 1010) - One of the best financial Saudi stocks in 2023
Riyad Bank is a commercial bank and a leading financial institution in Saudi Arabia. Offering diverse banking services and ranked fourth in assets, Riyad is considered a solid Saudi stock with a steady growth in the last years.
Analysts suggest that the price of Riyad Bank stock will grow 13.83% by the end of 2023 and reach 37.11 SAR level. and 71.56% within the next five years up to the 55.93 SAR level.
8. SABB stocks (Tadawul: 1060) - another top Saudi stock from the banking sector
Saudi British Bank (SABB) is a prominent financial institution in Saudi Arabia, known for its comprehensive banking services and significant presence in the industry. As a Riyadh-based Saudi joint stock company in which British banking firm HSBC Holdings PLC owns a minority stake, the bank traces its origins to the British Bank of the Middle East which was acquired by HSBC in 1959. Although SABB stock suffered a 50% price decline in 2019-2020, is still one of the best Saudi stocks to consider for 2023 and beyond.
Analysts suggest that the price of Saudi British Bank stock will grow 13.06% by the end of 2023 and reach a 42.40 SAR level. This top Saudi stock is forecasted to grow by 66.66% in the next five years and reach 62.50 SAR level.
9. Alinma stocks (Tadawul: 1150) - one of the best shares in the Saudi market
Alinma Bank is a leading financial institution in Saudi Arabia, providing a wide range of banking and financial services to individuals, businesses, and government organizations. Established with a strong presence in the country, Alinma Bank is recognized as one of the prominent banks in Saudi Arabia. Alinma became one of the most speculated Saudi stocks for local and international investors between 2021 and Q1 2022 when its price gained around 200%.
Analysts suggest that the price of Alinma Bank stock will grow by 7.33% in the next three months and reach 33.70 SAR level and 26.10% by the end of 2023 to reach 39.59 SAR. Within the next 5 years, this hot Saudi stock is expected to gain 129.29%.
10. Banque Saudi Fransi stock (Tadawul: 1050) - one of the best Saudi stocks
Banque Saudi Fransi provides banking and financial services in the Kingdom of Saudi Arabia through its 120 branches. It operates through Retail Banking, Corporate Banking, Treasury, Investment Banking, and Brokerage segments. The bank is affiliated with Crédit Agricole Corporate, the second largest bank in France, and Investment Bank. Although its shares price are in a downtrend since reaching an all-time high at 55 SAR, is still considered one of the best Saudi stocks to invest in for the long term.
Analysts suggest that the price of Banque Saudi Fransi stock will grow 9.64% by the end of 2023 and reach the 42.98 SAR level. In the next five years, its share price should gain 44.08% to reach 56.48 SAR level.
Are these the best Saudi stocks to invest in right now?
Not necessarily. These are some of the best Saudi stocks to watch in 2023 based on analyst coverage, and defensive and recovery opportunities. But that doesn't mean that they're the best Saudi stocks to invest in. Predicting the future of even the current top-performing Saudi stocks is a job even the pros haven’t yet mastered. And the best stocks to buy for your portfolio aren’t necessarily the best stocks for someone else’s portfolio.
For example, a young person who is looking to grow their retirement savings aggressively might gravitate toward growth stocks for their high-risk, high-reward volatility. On the other hand, a retiree who is looking for passive income might prefer predictable dividend stocks like the dividend aristocrats, which are relatively stable and have a history of consistently growing their dividend payments over time.
How to find the best Saudi stocks to buy now?
Choosing good stocks for your portfolio is a relatively time-consuming task, and you need to look beyond performance metrics like the ones on this page. Yes, it's a solidly good sign if a stock can outperform during periods of market volatility and the broad market declines like we've seen in 2022. But as referenced above, there are several other factors to consider.
Beyond your own personal risk tolerance and how long you plan to invest, strategic investors do significant research into a company before buying its stock. They perform fundamental analysis, which involves looking at the company's financial statements and considering how economic factors might influence the stock's future performance.
Many investors also do technical analysis of a stock, which means analyzing historical movements in the stock's price to attempt to predict future movements. If you want to go this route, we have detailed overviews of how to buy stocks and how to trade stocks, including key terms to know.
An alternative to chasing the best Saudi stocks to buy now
If all the above sounds like a lot of work, it is. The fact that picking Saudi stocks is so difficult leads many investors to turn to exchange-traded funds (ETFs), which bundle many Saudi stocks together.
When individual stocks come together into a diversified portfolio via index funds, they have a lot of power: The MSCI Saudi Arabia Investable Market Index (IMI) is designed to measure the performance of the large, mid and small-cap segments of the Saudi Arabia market. The index incorporates foreign ownership limit restrictions. With 110 constituents, the index covers approximately 99% of the free float-adjusted market capitalization in Saudi Arabia.
An MSCI Saudi Arabia Investable Market Index (IMI) index fund or ETF will aim to mirror the performance of the index by investing in the companies that make up that index. Likewise, investors can track the index with an index fund tied to that benchmark. If you want to cast a wider net, you could purchase a total stock market fund, which will hold thousands of stocks.
Within index funds, the winners balance out the losers — and you don’t have to forecast which is which. That’s why many financial advisors think low-cost index funds and exchange-traded funds should form the basis of a long-term portfolio.
Investing in Saudi Stocks via iShares MSCI Saudi Arabia ETF (KSA)
Are you looking to invest in the companies shares from a well-established country that is undergoing economic transformation? When the iShares MSCI Saudi Arabia ETF (NYSE ARCA: KSA) launched in 2015, investors gained an easy way to access broad exposure to the country. The fund is a market-cap-weighted index that tracks the broad-based index composed of Saudi Arabian equities. The ETF is traded on the NYSE and is an iShares product powered by BlackRock.
Top 10 Holdings:
- Al Rajhi Bank - 12.99%
- Saudi National Bank - 9.53%
- Saudi Basic Industries - 7.04%
- Saudi Arabian Oil - 6.95%
- Saudi Telecom - 4.89%
- Saudi Arabian Mining - 4.30%
- Riyad Bank - 3.90%
- Saudi British Bank - 3.02%
- Alinma Bank - 2.83%
- Banque Saudi Fransi - 2.16%
Why Invest in Saudi stocks via KSA?
- Access to the Saudi Arabian stock market and get exposure to a country with growth potential.
- Launched in 2015, the investment fund is approaching $1B in assets under management.
- The average annual return since inception is 8.4%, while the average of the last 3 years is 19.84%.
Final words on the best Saudi stocks
Before you consider some of the best Saudi stocks listed here, you'll want to hear this.
If you're starting on your investing journey (or if you want a sanity check), please read through our how-to-invest in stocks guide. It goes through all the basics, from how to get started to how to determine your personal investing strategy, to how much of your money to invest in stocks.
Although analysts are bullish on each of these stocks and think they are good Saudi stocks to buy right now, they might not all be the best choices for investors who don't yet have established and diversified portfolios. Even the most stable companies on this list aren't immune to volatility in their stock prices, especially over short periods.
For this reason, if you're just getting started, you'll also want to consider a well-diversified option like the iShares MSCI Saudi Arabia ETF (NYSE ARCA: KSA).
Before you start investing in the best stocks for your portfolio, you should consider using the educational resources we offer like CAPEX Academy or a demo trading account. CAPEX Academy has lots of trading courses for you to choose from, and they all tackle a different financial concept or process – like the basics of analyses – to help you to become a better trader or make more-informed investment decisions.
Our demo account is a suitable place for you to learn more about leveraged trading, and you’ll be able to get an intimate understanding of how leveraged trading works – as well as what it’s like to trade with leverage – before risking real capital. For this reason, a demo account with us is a great tool for investors who are looking to make a transition to leveraged trading.
What are the best Saudi stocks?
The best Saudi stocks can vary based on individual investment goals and market conditions. However, some top-performing Saudi stocks include companies like Al Rajhi, Alahl, and Maaden and more. It is recommended to conduct thorough research and seek professional advice before making investment decisions.
How can I identify the best Saudi stocks?
Identifying the best Saudi stocks requires analyzing various factors such as financial performance, industry outlook, market trends, and company fundamentals. It is advisable to consider factors like revenue growth, profitability, market share, and sustainability initiatives when evaluating potential stocks.
Are Saudi stocks a good investment?
Investing in Saudi stocks can offer opportunities for growth and diversification. The Saudi Arabian market has witnessed positive economic reforms, increased foreign investment, and a thriving private sector. However, investing in stocks always carries inherent risks, and it is crucial to assess your risk tolerance and seek professional guidance to make informed investment decisions.
How can I invest in Saudi stocks?
To invest in Saudi stocks, you can open a brokerage account with a licensed financial institution that provides access to the Saudi Stock Exchange (Tadawul). Research different brokerage options, compare their services and fees, and ensure they offer the necessary tools and support for investing in Saudi stocks.
How can I stay updated on the performance of Saudi stocks?
You can stay updated on the performance of Saudi stocks by regularly monitoring financial news, using stock market research platforms, and following reliable sources of information. Additionally, many brokerage firms provide real-time stock quotes, analysis, and market insights to help investors stay informed.
Should I diversify my Saudi stock portfolio?
Diversification is generally considered a prudent investment strategy. By diversifying your Saudi stock portfolio, you can spread out the risk. Investing in stocks from different sectors and industries can help mitigate the impact of any negative performance of individual stocks.
What are the risks associated with investing in Saudi stocks?
Investing in Saudi stocks carries certain risks, including market volatility, geopolitical uncertainties, regulatory changes, and company-specific risks. It is important to assess these risks, conduct thorough research, and consider your risk tolerance before making any investment decisions.