Evaluating Investment Performance in the Saudi Financial Markets: A Case Study of Listed Companies in the Saudi Stock Exchange (Tadawul)

Abstract

This study evaluates the investment performance of companies listed on the Saudi Stock Exchange (Tadawul) between 2020 and 2025. By analyzing key financial indicators such as return on investment, risk, dividend yield, and valuation metrics across major sectors—financial, industrial, and services—the research provides a comprehensive assessment of market trends and sector-specific dynamics. The findings indicate that the services sector, particularly telecommunications company, offers the best balance of risk and return, while the financial sector provides stable income through consistent dividends. The industrial sector exhibits higher volatility but also potential for growth. A multi-factor composite performance score was developed to aid investors in making informed decisions based on a holistic view of company performance. The study concludes with recommendations for investors, policymakers, and companies to optimize investment strategies, enhance market stability, and support sustainable growth within the Saudi financial markets.