Securities trading in Saudi Arabia began as early as 1954, with a mere 14 listed companies. This informal financial market evolved through 1970's and acquired formal status as the Saudi Company for Share Registration in 1980 which was established under the regulation of a Special Ministerial Committee. In the year 2007, the Tadawul stock exchange was established as the sole entity for securities exchange in Saudi Arabia. Capital Market Authority is responsible for the regulation of capital markets in Saudi Arabia.
Today the Saudi Arabian Capital Market is the largest in the GCC region. It constitutes about 77.1% of the market capitalization and about 73.5% of the value traded in the GCC region. Exchange traded instruments include - Equities (Main market & NOMU), Sukuk/Bonds, Exchange traded funds (ETFs), Real estate investment trusts (REITs), Closed ended funds (CEFs) and derivatives.