Gulf markets dip amid rising geopolitical tensions; Saudi Arabia and UAE stocks fall the most

On Wednesday, Gulf stock markets opened broadly lower, tracking regional unrest triggered by Israeli airstrikes targeting Hamas leaders in Doha. The downturn reflects heightened market sensitivity to geopolitical risk, with key indices in Saudi Arabia, the UAE, and Qatar posting early losses. While global crude prices edged up, the rebound was tempered by a fragile market outlook. Oman was the only regional market to show gains.

Saudi market movement – TASI falls 0.42%, Aramco and Al Rajhi slip

Saudi Arabia’s benchmark Tadawul All Share Index (TASI) declined 0.42%, opening at 10,494 points, amid ongoing tensions in the region. The decline was led by:

• A 0.2% drop in Al Rajhi Bank (1120.SE)
• A 0.3% fall in Saudi Aramco (2222.SE)

Meanwhile, Dar Al Majed Real Estate Co (4326.SE) made its market debut, with shares opening at SAR 13.97, slightly below the IPO price of SAR 14.

The Saudi exchange, the largest stock market in the Gulf, mirrored the region’s overall trend, driven largely by investor caution amid the latest geopolitical escalations.

UAE markets – Dubai and Abu Dhabi track regional slide
Both Dubai and Abu Dhabi stock markets opened weaker:

• Dubai Financial Market (DFM) general index slipped 0.27%, starting the day at 5,941.34 points.
• Abu Dhabi Securities Exchange (ADX) dropped 0.213%, opening at 9,932.49 points.

Sector-wise declines were led by major financial players:

• Dubai Islamic Bank (DISB.DU) declined 0.7%
• Emirates NBD (ENBD.DU) lost 0.6%

The UAE markets, which generally move in tandem with global equities, are also heavily influenced by local and regional geopolitical events, which have increasingly become a defining factor for investor behaviour in the region.

Wider GCC market overview – Qatar, Bahrain, Kuwait down; Oman rises
Across the wider Gulf region, most stock exchanges followed a similar pattern:

• Qatar Stock Exchange fell 0.34%, dropping to 11,070 points shortly after opening. This followed Israel’s airstrike in Doha, which reportedly targeted political leaders of Hamas, escalating ongoing conflict in the Middle East.
• Bahrain Stock Exchange slipped 0.04%, down to 1,945.9 points at market open.
• Boursa Kuwait registered a mild decline during early trading, also mirroring the regional trend.
• Muscat Stock Exchange in Oman, however, defied the regional movement, gaining 0.27% to reach 5,086 points, making it the only gainer among GCC markets on Wednesday.

The declines across most GCC exchanges come after similar reactions during previous escalations, such as the earlier Israel-Iran conflict, where equity markets initially dropped before stabilising.