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This paper investigates the effects of stock market wealth on consumer spending. Basic macroeconometric models estimate that a Saudi Riyal's increase in stock market wealth boosts consumer spending by 7-9 Halals per year. With the significant 2004 and 2005 rise in stock prices in Saudi financial market, the nature and importance of this wealth effect have been much debated. After reviewing previous works, we find new evidence from the Direct Survey of Income & Consumption(DSOIC). The survey results are mostly consistent with lifecycle saving and a modest wealth effect. Some stockholders reported substantial effect of stock prices on their saving and spending.