Gulf equities traded without clear direction on Tuesday as fading oil prices and uncertainty over U.S. interest rates left investors treading carefully.
The U.S. Federal Reserve’s latest rate cut—its second this year—did little to lift sentiment after Chair Jerome Powell hinted that another cut in December was “not a foregone conclusion.” Expectations for a year-end reduction have slipped to around 65% from over 90% a week earlier, according to CME’s FedWatch Tool. That shift matters deeply for Gulf economies, where most currencies shadow the U.S. dollar.
Saudi Arabia’s benchmark index inched up 0.2%, powered by gains in Saudi National Bank and energy titan Aramco, both up 1.1%. Aramco’s quarterly profit dipped slightly to 101.02 billion riyals ($26.9 billion), but the oil major lifted its target for gas production growth to 80% above 2021 levels by 2030, signaling long-term optimism. Saudi Telecom also advanced 0.9% after reporting stronger quarterly revenue.
Adding to the upbeat tone, Saudi Arabia’s non-oil private sector logged one of its best showings since 2014, driven by new business and job creation.
Abu Dhabi’s index edged up 0.3%, with Aldar Properties rebounding 3% after recent losses linked to reports of a potential stake sale by Alpha Dhabi.
Dubai’s market, however, slipped 0.1% as Emirates NBD fell 1.8%, while Qatar’s benchmark dropped by the same margin, weighed down by a 0.7% dip in Qatar Islamic Bank.
Oil prices continued to sag, with traders interpreting OPEC+’s decision to pause output increases early next year as a sign that supply may already be outpacing demand—casting a shadow over the region’s energy-heavy markets.
