Most stock markets in the Gulf extended gains on Wednesday, buoyed by interest rate cuts enacted by regional central banks following the U.S. Federal Reserve’s decision to reduce rates by half a percentage point. However, geopolitical tensions in the Middle East weighed on investor sentiment.
Last week, Gulf central banks cut key interest rates after the Fed lowered its rates, citing greater confidence in managing inflation. The Fed also projected further cuts: half a point by year-end, a full point next year, and a half-point in 2026. As Gulf Cooperation Council (GCC) currencies are largely pegged to the U.S. dollar, regional monetary policy typically follows the Fed’s actions.
Saudi Arabia’s stock market rose 0.6%, driven by a 3.2% increase in Al Taiseer Group and a 0.7% rise in Saudi Aramco. Dubai’s index also gained 0.6%, led by a 2.2% uptick in Emirates NBD.
In Abu Dhabi, the index climbed 0.6%, bolstered by a 0.5% rise in telecoms group e&, which saw the EU Commission approve its acquisition of parts of Czech telecom company PPF. Qatar’s benchmark index added 0.5%, supported by a 1.3% gain in Qatar National Bank.
Outside the Gulf, Egypt’s blue-chip index surged 1.2%, with Talaat Mostafa Holding rising 2.5%.
Meanwhile, regional tensions remain high as an Israeli airstrike killed a senior Hezbollah commander in Beirut, sparking fears of further conflict.
Market Summary
- Saudi Arabia: +0.6% to 12,344
- Abu Dhabi: +0.6% to 9,516
- Dubai: +0.6% to 4,489
- Qatar: +0.5% to 10,543
- Egypt: +1.2% to 31,251
- Bahrain: -0.3% to 2,019
- Oman: +0.2% to 4,727
- Kuwait: +0.6% to 7,794
