Gulf stock markets closed with mixed results on Sunday amid rising geopolitical tensions in the region. However, the Saudi index continued to gain, driven by speculation that U.S. interest rate cuts will persist.
The Qatari index dropped by 0.2%, with Qatar National Bank shares declining 0.8% and Industries Qatar falling 0.5%.
In contrast, the Saudi index rose by 0.4%, supported by a 1% increase in Al-Tayseer Group shares.
The U.S. Federal Reserve recently reduced interest rates by 50 basis points and hinted at another half-point cut by the end of the year, followed by a full-point reduction in 2025 and an additional half-point in 2026.
Gulf Cooperation Council (GCC) countries usually align their monetary policies with the Federal Reserve due to their currencies being pegged to the U.S. dollar.
Outside the Gulf
In Egypt, the blue-chip index rose by 0.3%, supported by a 3.4% gain in shares of EFG Hermes.
Egyptian Prime Minister Mostafa Madbouly announced Thursday that Saudi Arabia’s $5 billion investment plans in Egypt are separate from its deposit at the Central Bank of Egypt, boosting bond prices.
This mixed performance across the region reflects the influence of global economic policies and local geopolitical dynamics on Gulf markets.
