The mood across the major Gulf exchanges turned into a patchwork of gains and slips, as weakening oil prices tugged at sentiment and investors shifted their gaze toward key U.S. economic clues expected later in the week.
Oil — the region’s financial metronome — sagged for a second straight session. With Russia-Ukraine talks stirring hopes of additional supply and stockpiles climbing, traders grew wary of a looming surplus. For economies built on crude revenues, every dip in price nudges fiscal balances off rhythm.
Saudi Arabia’s main index inched down 0.3%, pulled lower by slight declines at Al Rajhi Bank and industry titan Saudi Aramco. A day earlier, the kingdom signed off on its 2026 budget, outlining a narrower deficit of 165 billion riyals as spending pivots toward logistics and industrial growth to strengthen non-oil income.
Qatar’s market slipped 0.1%, weighed by a modest drop at Qatar National Bank, the region’s biggest lender.
Dubai, meanwhile, stepped in the opposite direction, climbing 0.6% as Emirates NBD jumped nearly 3%. Abu Dhabi joined the upward tilt with a 0.7% rise as trading resumed across the UAE following National Day holidays.
Across the region, attention is now locked on upcoming U.S. data releases — including the ADP private payrolls snapshot and the long-delayed PCE inflation gauge. With Gulf currencies largely tethered to the dollar, every hint from Washington carries amplified weight.
U.S. rate futures currently suggest an 88% chance of a Federal Reserve rate cut next week, nudging higher from last week’s odds, and adding yet another layer of anticipation to already watchful Gulf markets.
