Markets across the Middle East swung between caution and optimism, with investors weighing U.S. interest rate cut hopes against the drag of softer oil prices and geopolitical unease.
In Riyadh, the mood stayed heavy. Saudi Arabia’s benchmark slipped 0.4%, brushing against a two-year low as every sector closed in the red. Sulaiman Al Habib tumbled 2.4%, while oil giant Aramco shed another 0.2%, extending a bruising run that included its steepest fall in more than five years. Even news of Aramco raising $3 billion through Islamic bonds wasn’t enough to turn the tide. Newly listed Dar Al Majid was hit hard, sliding 8.2% as its post-debut slump deepened.
The UAE offered brighter spots. Dubai’s index climbed 0.6%, lifted by a rebound in financials, including a 2.7% gain in Emirates NBD Bank. Abu Dhabi halted a four-day decline, rising 0.3% thanks to Aldar Properties’ 3.6% jump — its sharpest rally in nearly two months. Orascom Construction’s debut on the exchange turned heads, surging 8% and adding momentum beyond the emirate.
Qatar’s index edged 0.1% higher, breaking a three-day losing streak on the back of industrial buying. Industries Qatar, in particular, snapped a four-week slide with gains above 2%. Yet despite the day’s respite, the market still logged a fourth straight weekly drop.
Outside the Gulf, Egypt’s blue-chip index advanced 0.8%, helped by Commercial International Bank’s 1.2% rise. Cooling inflation — easing to 12% in August — added to the optimism, extending a two-year downtrend under tight monetary policy. The Orascom debut in Abu Dhabi also sent a ripple of confidence back into Cairo’s market.
Across the region, investors are keeping their eyes fixed on Washington. Softer U.S. producer price data strengthened bets on multiple Federal Reserve rate cuts this year — a shift that could heavily influence Gulf markets, where currencies are pegged to the dollar and monetary policies often move in lockstep with the Fed.
Closing Numbers:
Saudi Arabia: -0.4% to 10,453
Abu Dhabi: +0.3% to 9,960
Dubai: +0.6% to 5,957
Qatar: +0.1% to 11,093
Egypt: +0.8% to 34,937
Bahrain: +0.1% to 1,943
Oman: -0.1% to 5,082
Kuwait: -0.2% to 9,342
