Tadāwul was formed in 2007 as a joint stock company and the sole entity authorized to act as a securities exchange in Saudi Arabia, but trading began in 1954 as an informal financial market.

[3] It is among the world's 10th largest stock exchange with a market capitalization exceeding US$3 trillion in July, 2024.

[10] The second day of the crash on Sunday 26 February 2006 witnessed a wave of collective selling in the first minute of trading, which caused an increase in panic and contact with more than 60 companies with the lowest rate, and the closure of all market companies on a sharp decline, as the sale of 1.5 million shares was executed in the first minute of trading, especially after the Kingdom's Capital Market Authority (CMA) decided to reduce the volatility to 5% and implement it with the start of trading on Saturday, 25 February of the year 2006.

Some attributed the cause of the collapse to many things, including stopping a number of speculators and the fear of others of similar sanctions, and to the decision to determine the percentage of fluctuation and the abolition of fractures, and prevent the return of speculators 'commissions, which seem weak compared to the main collapse of the price inflation that the regulatory authorities contributed to.

This necessitated King Abdullah's personal intervention to resolve the crisis, where he ordered the division of shares and the permitting of non-Saudi residents to invest directly in the stock market and not limiting it to investment funds and reducing the nominal value of the share, which were issued by decisions of the CMA and was applied.