Good morning, everyone. It's been another eventful day for Saudi business, and the latest corporate earnings tell a story that goes well beyond the headline numbers.
SABIC is selling fewer chemicals but earning more as disruptions to Gulf shipping push up prices. Meanwhile, the wider Saudi market is facing a more difficult question: can companies turn higher prices into lasting profits when moving goods is becoming more expensive?
Here's today's Five.
1. Saudi Stocks Suffer Worst Session in 18 Months
Saudi Arabia's stock market extended its selloff on Sunday, falling to another five-year low as renewed attacks rattled investors.
The Sell off: The Tadawul All Share Index (TASI) dropped 2.7% to around 9,440 points, its worst session in 18 months, after falling as much as 3.4% during trading.
Saudi Aramco shares lost 0.9%, while selling spread across construction, retail and industrial stocks.
Why It Matters: Saudi stocks have now fallen for eight consecutive weeks, and Sunday's decline suggests investors are still reducing their exposure despite higher oil prices.
The market is confronting an uncomfortable trade-off: expensive oil supports government revenue, but continued attacks threaten business activity, exports and investment confidence.
What To Watch: Whether bargain hunters emerge after the latest selloff or investors continue selling ahead of more Q3 earnings announcements.
2. SABIC Sells Less, Earns More as Supply Crunch Lifts Prices
SABIC is earning more from fewer chemical sales as higher prices help offset shipping disruptions that have forced the company to reroute exports through Saudi Arabia's Red Sea ports.
The Numbers: SABIC earned SR500mn ($133mn) in Q3, up 16% yoy, while revenue slipped 3% yoy to SR28bn. Compared with Q2, revenue rebounded 14%.
Behind The Numbers: Higher selling prices helped lift earnings despite lower sales volumes. SABIC also benefited from improved results from companies it partly owns and a recovery in the value of a European-listed investment.
The Work around: The company has been moving more chemicals across Saudi Arabia to Red Sea export terminals, reducing its dependence on disrupted Gulf shipping routes.
The Catch: SABIC is still loss-making for 2026 overall. Its nine-month loss narrowed to SR320mn from SR4.8bn a year earlier, while revenue declined 11% to SR79bn.
Much of the improvement reflects the absence of heavy charges recorded in 2025, rather than a complete recovery in its core business.
The chemical giant is demonstrating that higher selling prices and alternative export routes can help protect earnings during a supply crunch. But its nine-month losses show that the recovery remains incomplete.
Chief Executive Officer Faisal Al Faqeer is pressing ahead with restructuring, including the sale of businesses in Europe and the Americas. SABIC has completed a $450mn divestment and is focusing on efficiency and selective investment.
3. Riyadh Airport Reopens, but Airlines Remain Cautious
Riyadh's King Khalid International Airport reopened two terminals on Sunday, more than two weeks after an attack shut down operations. The return of flights is a significant step, but it remains a partial reopening.
Terminal 1 was designated for domestic flights and Terminal 2 for international services operated by Saudi national carriers.
The reopening came despite renewed Houthi warnings against using the airport. Saudi authorities reported intercepting further drones and missiles targeting Riyadh and other parts of the Kingdom.
Why It Matters: Saudi Arabia needs reliable international connections to attract investors, bring in technical specialists and support tourism.
The airport's reopening is important, but it doesn't automatically restore confidence among foreign airlines. Carriers must assess security conditions and the risk of further interruptions before resuming regular schedules.
4. Saudi Arabia Overtakes Malaysia as World’s Top Sukuk Market
Saudi Arabia has overtaken Malaysia as the world's largest sukuk market, with $369bn in outstanding Islamic bonds at the end of 2025, as the Kingdom increasingly turns to debt financing to fund government spending and corporate expansion.
Behind The Numbers: Saudi sukuk outstanding rose 18% to $369bn, surpassing Malaysia's $359bn. The Kingdom now accounts for roughly one-third of the $1.1tn global sukuk market.
The Big Shift: Malaysia has long been the global benchmark for Islamic finance. Saudi Arabia's rise reflects the growing scale of its debt market as the government and companies seek funding for infrastructure, investment and economic diversification.
Why It Matters: Saudi corporate sukuk and debt offerings reached SR51bn in 2025, compared with SR34bn raised through equity offerings. Debt issuance is becoming an increasingly important financing channel, allowing companies to raise capital without diluting existing shareholders.
5. Saudi Arabia Raises Utility Prices as Fiscal Pressure Mounts
Saudi Arabia will raise electricity and water tariffs from January 1, 2027, while introducing additional financial support for households and public-sector workers in a move that could reshape living costs and business expenses
The New Rates: Residential electricity prices will rise by nearly 17% for monthly consumption of up to 6,000 kilowatt-hours, while rates for consumption above that threshold will increase by 10%. New fixed monthly meter charges will also apply.
The Offset: Authorities approved an additional SR500 ($133) per month for covered government employees, military personnel and retirees, alongside SR500 in monthly support for eligible social security households. The measures aim to cushion the impact of higher living costs.
Why Now: Saudi Arabia is raising utility tariffs as fiscal pressure mounts. Riyadh expects a SR245bn deficit this year, SR80bn above its original forecast, amid war-related disruptions and heavy Vision 2030 spending.
Higher tariffs could ease the subsidy burden, while SR500 monthly payments cushion the impact on eligible Saudis. The changes will affect households differently depending on electricity consumption, meter charges and eligibility for support.
Businesses could also face higher operating costs, particularly in energy-intensive sectors.
The Bigger Picture: Saudi Arabia is pairing higher utility prices with financial support for eligible groups, potentially changing household spending patterns and cost structures across the economy.
What We're Watching
SAUDI STOCKS: The market's latest 2.7% decline puts further pressure on valuations. Watch whether Monday brings another round of selling or a rebound after Sunday's sharp losses.
SABIC'S INVESTOR CALL: SABIC is scheduled to discuss its Q3 results on Monday, October 26. Management's comments on shipping costs, chemical prices and export routes will be particularly important.
SAUDI TRADE DATA: August trade figures are due Monday. They should offer another indication of how the conflict has affected export volumes and the Kingdom's trade balance.
BANK LENDING: September credit data are expected Thursday. Private-sector lending grew 6% yoy in August, and the next release will help show whether borrowing demand is holding up despite the conflict.
Five stories. Five minutes. One step ahead.
The news doesn't stop here. Neither do we. See you tomorrow.
