Address
Riyadh, Saudi Arabia
The Short Answer
To buy stocks on the Saudi stock market (Tadawul), open an investment portfolio with a broker licensed by the Capital Market Authority and transfer money into it. Then search for the stock by name or symbol and place a buy order during trading hours, Sunday to Thursday, between 10:00 a.m. and 3:00 p.m. Most brokers let you do all of this in a mobile app.
Quick Facts
| Item | Detail |
|---|---|
| Regulator | Capital Market Authority (CMA) |
| Market | Saudi Exchange (Tadawul) |
| What you need to start | A portfolio with a licensed broker, a bank account in your name, and cash |
| Trade settlement | Two business days after the execution date (T+2) |
How Does Buying Stocks on the Saudi Market Work?
Stocks are traded on the Saudi Exchange (Tadawul), and individual investors can only access it through a broker that is a member of the exchange. You never buy shares from the listed company directly. Your broker sends your order to the market, and when a seller is available at your price, the trade is executed and the shares appear in your portfolio. The trade is then settled, meaning its value moves from the buyer’s account to the seller’s, two business days after the execution date. The Securities Depository Center (Edaa), part of the Saudi Tadawul Group, provides post-trade services in the market.
Who Can Open a Portfolio to Buy Saudi Stocks?
An individual can open a portfolio if they are a Saudi national, a citizen of a Gulf Cooperation Council (GCC) country, or a registered resident of the Kingdom. The documents you need depend on your nationality, as the Saudi Exchange explains on its how to become an investor page:
| Investor type | Required documents |
|---|---|
| Saudi or GCC national | National ID or family record |
| Non-GCC resident | Valid residency permit (iqama) and passport |
You also need a bank account in your own name to move money in and out. Investors who live outside the Kingdom follow a different route, which we cover in our article on trading Saudi stocks as a non-Saudi.
What Are the Steps to Buy Saudi Stocks?
The process has six steps:
- Choose a licensed broker. The Saudi Exchange publishes a directory of member firms, including Al Rajhi Capital, Sahm Capital and Derayah Financial. Compare them on commission rates, how easy the app is to use, how quickly accounts are opened, customer service, and the research and news tools they offer. If you need help comparing, see our guide to choosing a stock trading app.
- Open the investment portfolio. The broker checks that you are eligible, collects your details and ID documents, and asks about your experience and tolerance for risk. Your portfolio is then opened and ready for trading. Many brokers let you do this in the app, and some require a branch visit.
- Link your bank account and transfer funds. Add your bank account in the app, then transfer the amount you want to invest into your portfolio account. Avoid investing all your savings at once. Start with an amount you could afford to partly lose without putting your monthly bills at risk.
- Pick a stock. Every listed company has a four-digit symbol, and you can search by name or symbol. Before buying, look at the company’s business, its profits over recent years, its debt, its cash dividends, and how the stock has performed compared with its sector. Keeping an eye on the overall market also helps you read the trend, as we explain in our article on the TASI index today.
- Place the buy order. Enter the number of shares, the price and the order type (market or limit, compared below). Check the order details before you confirm, because you cannot cancel an order once it has been executed.
- Track your portfolio and decide when to sell. Once the order is executed, the stock appears in your portfolio. Decide from the start why you bought and what you want to achieve: regular dividends, long-term growth or short-term trading. Your goal should guide when you hold and when you sell.
What Is the Difference Between a Market Order and a Limit Order?
A market order guarantees that your trade is executed but not the price, while a limit order guarantees the price but not execution. The table shows the differences:
| Comparison | Market order | Limit order |
|---|---|---|
| Price | Best available price when you place the order | The price you set |
| Execution | Usually immediate | May not execute if the stock never reaches your price |
| Risk | You may pay more than expected in thinly traded stocks | You never pay more than the limit you set |
| Best for | Highly liquid stocks | Beginners and thinly traded stocks |
How Do You Buy Saudi Aramco Shares?
You buy Saudi Aramco shares in the same way as any other stock. The company is listed on the main market under the symbol 2222. Search your broker’s app for “Aramco” or the symbol 2222, check the current price and trading volume, then enter the number of shares and your price. Before buying, read the company’s financial reports and its dividend policy as announced by Aramco itself, not as circulated on social media.
What Are the Trading Hours on the Saudi Market?
The market trades from Sunday to Thursday, excluding official holidays. According to the Saudi Exchange’s page on trading days and times, the daily session has the following phases, in local time:
| Session | Time | What happens |
|---|---|---|
| Opening auction | 9:30 a.m. to 10:00 a.m. | Orders are collected and the opening price is set |
| Continuous trading | 10:00 a.m. to 3:00 p.m. | Orders execute as soon as a counterparty is available |
| Closing auction | 3:00 p.m. to 3:10 p.m. | The closing price is determined |
| Trade at last | 3:10 p.m. to 3:20 p.m. | Orders execute at the closing price only |
For a beginner, the best time to place an order is during continuous trading, when you can see the live price and follow the execution.
How Much Does It Cost to Buy Stocks?
Brokers charge a commission on every purchase and sale, and the rate differs from one firm to another. For example, SAB Invest publishes a commission of 0.155% of the executed trade value for local stocks. If you buy 100 shares at SAR 25, the trade value is SAR 2,500, and the commission at that rate is about SAR 3.88. This is only an illustration. Before you start, ask your broker for its commission rate and for any fees or taxes charged on top.
What Mistakes Do Beginners Make When Buying Stocks?
Five mistakes come up most often, and the table shows what to do instead:
| Mistake | Why it is risky | Better approach |
|---|---|---|
| Buying on a passing tip | You buy without knowing the company or why you are buying | Research the company yourself first |
| Investing emergency money | The stock may be down just when you need the cash | Keep a reserve outside the market |
| Putting everything in one stock | One falling stock can hurt your whole portfolio | Spread your money across sectors and companies, or look at exchange-traded funds on Tadawul |
| Entering a price far from the current price | You pay more than you should, or the order never executes | Check the current price before confirming |
| Selling at the first dip | Prices move every day, and emotional decisions often lead to losses | Decide when to sell based on your plan, not on how you feel in the moment |
Frequently Asked Questions About Buying Stocks on the Saudi Market
What is the minimum amount needed to buy stocks?
It depends on the price of the stock you choose and on your broker’s policy. Some brokers set a minimum deposit for the portfolio, so ask yours before you transfer money, and remember to leave room for the commission on top of the share price.
Can I buy stocks if I am a non-Saudi resident?
Yes, if you are a registered resident of the Kingdom. Your broker may ask for additional documents under its own policy, so check with them before opening the portfolio.
When can I withdraw the proceeds from a sale?
Trades on the Saudi market settle two business days after the execution date (T+2), as Edaa explains. This means the money may not be available to withdraw to your bank account on the same day, and how quickly it arrives depends on your broker.
Can I place a buy order outside trading hours?
Some apps let you enter an order outside the session so that it executes when the market opens the next day, but not every broker offers this. The execution price may then differ from the price you saw, so it is better to use a limit order at a price you choose.
Conclusion
Start by choosing a licensed broker and opening a portfolio, then transfer a suitable amount, pick a stock after researching it, and place a limit order during trading hours. If you are thinking about investing beyond local stocks, our guide to investing in US stocks from Saudi Arabia may help.
