A wave of cautious optimism swept through Gulf equity markets on Thursday, with investors returning to regional stocks after renewed signals that Washington and Tehran could be inching closer to a diplomatic breakthrough. Stronger crude prices added fuel to the rebound, helping most major bourses close in positive territory.
Oil climbed sharply after reports emerged that Iran’s top leadership had instructed officials not to move the country’s highly enriched uranium stockpile abroad, a development traders interpreted as part of a broader negotiating posture rather than outright escalation. At the same time, diplomatic channels remained active, with Pakistan intensifying efforts to facilitate dialogue between the United States and Iran.
Tehran indicated it was reviewing the latest proposals from Washington, while U.S. President Donald Trump suggested he was willing to give negotiations more time, though he warned military action remained an option if talks stalled.
Dubai’s market recovered from the previous session’s weakness, with the benchmark index advancing 0.6%. Property heavyweight Emaar Properties gained 1.1%, while low-cost carrier Air Arabia jumped 2.4% as buying interest spread across sectors.
Investor sentiment also drew support from fresh economic stimulus measures announced by Dubai authorities. The emirate approved another 1.5 billion dirhams in incentives, lifting the total value of recent support packages to 2.5 billion dirhams.
In Abu Dhabi, the main index added 0.4%, powered by utilities and energy-linked shares. Abu Dhabi Islamic Bank rose 1.2%, while ADNOC Logistics & Services and ADNOC Gas also moved higher.
Executives at ADNOC reaffirmed the group’s commitment to its massive $150 billion investment programme aimed at expanding capacity and reinforcing long-term growth ambitions amid resilient global energy demand.
Qatar’s exchange also joined the rally. The benchmark index climbed 0.6%, led by a surge in Estithmar Holding after reports suggested the firm had engaged Rothschild regarding a possible public listing of its healthcare arm.
Industrial and petrochemical names tracked oil prices higher, with Industries Qatar and Mesaieed Petrochemical Holding Company both posting gains.
Separately, QatarEnergy announced its entry into Uruguay’s upstream energy sector through the acquisition of stakes in three offshore exploration blocks from a Shell subsidiary.
Saudi Arabia’s Tadawul index edged up 0.4%. Banking shares supported the move, with Saudi National Bank rising 2.2%.
The standout performer, however, was Kingdom Holding Company, which soared 8.3% after announcing that the new Four Seasons Resort and Residences on Shura Island in the Red Sea development had begun receiving guests.
Oman delivered the strongest performance in the region. Its benchmark index leapt 5.4%, ending a nine-session losing streak as every listed constituent finished in positive territory. OQ Exploration and Production climbed 6.8%, while Bank Nizwa surged 9.4%.
Market analysts said the rally suggested investors still viewed the Omani market as fundamentally resilient despite recent pressure.
Beyond the Gulf, Egypt’s blue-chip index added 0.3%, supported by gains in Orascom Development Holding and Fawry for Banking Technology and Electronic Payments.
By the close:
Saudi Arabia rose 0.4% to 11,028
Dubai gained 0.6% to 5,661
Abu Dhabi advanced 0.4% to 9,637
Qatar added 0.3% to 10,380
Kuwait climbed 0.6% to 9,188
Bahrain edged up 0.2% to 1,929
Oman surged 5.4% to 7,632
Egypt increased 0.3% to 52,091
