The Saudi share market revenue also declined by 1.6% due to lower trading and post-trade revenues, despite a surge in data and technology services revenue.

Saudi Tadawul Group Holding Co. (the Group), the operator of the Saudi share market, announced its financial results for the year 2023, showing a decrease in both revenue and net profit compared to the previous year.

The Group’s revenue reached SAR 1,072.8 million in 2023, down by 1.6% from SAR 1,090.2 million in 2022. The decline in revenue was mainly attributed to lower trading and post-trade revenues, which fell by 17.5% and 1.8% respectively, due to a 22.4% decrease in trading values.

However, this was partly offset by a 64.2% increase in data and technology services revenue, which rose to SAR 164.5 million in 2023, driven by higher demand for market information services, co-location services, and the revenue contribution from the Direct Financial Network Company, which the Group acquired a 51% stake in May 2023.

The Group’s net profit after zakat amounted to SAR 390.1 million in 2023, down by 8.1% from SAR 424.6 million in 2022. The decrease in net profit was mainly due to the lower revenue, as well as higher operating expenditures, which increased by 15.5% to SAR 744.5 million in 2023.

The increase in operating expenditures was primarily due to the consolidation of the Direct Financial Network company financials, the rise in workforce cost due to an increase in headcount as per the Group’s plan, and the increased costs in systems maintenance.

The Group’s profit per share decreased by 8.1% to SAR 3.25 in 2023, from SAR 3.54 in 2022. The gross profit decreased by 13.6% to SAR 606.8 million in 2023, from SAR 702.5 million in 2022.

The operational profit decreased by 26.4% to SAR 328.3 million in 2023, from SAR 445.9 million in 2022. The total comprehensive income decreased by 13.3% to SAR 387.9 million in 2023, from SAR 447.2 million in 2022.

The total shareholders’ equity (after deducting the minority equity) decreased by 1.6% to SAR 3,129.0 million in 2023, from SAR 3,179.7 million in 2022.

The Group is organized into three business segments based on the services provided: Capital Markets, Data & Technology Services, and Post-Trade. The Capital Markets segment provides trading, listing, and market data services for equities, debt instruments, exchange-traded funds, and derivatives.

The Data & Technology Services segment provides market information, co-location, network connectivity, and technology solutions to market participants and third parties. The Post-Trade segment provides clearing, settlement, depository, and registry services for securities transactions.

Saudi share market

The Saudi share market, also known as the Saudi Exchange or Tadawul, is the largest and most liquid stock market in the Middle East and North Africa region. It offers a variety of investment opportunities in different sectors, such as banking, energy, telecom, real estate, and more. The main market index is the Tadawul All Share Index (TASI), which tracks the performance of all listed companies on the exchange.

The parallel market, also known as Nomu, is a secondary market for qualified investors that provides access to smaller and emerging companies.

The Saudi share market also offers trading in sukuk and bonds, funds, and derivatives.

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