Gulf Stock Markets Rebound Strongly Amid Ceasefire Agreement


Stock markets across the Gulf Cooperation Council (GCC) surged this week following the announcement of a ceasefire between Israel and Iran, easing investor concerns over regional stability and boosting confidence in equities.

Major indices in the United Arab Emirates, Saudi Arabia, Qatar, and Kuwait recorded solid gains as trading volumes picked up and geopolitical tensions subsided.

Dubai Financial Market led the rally with a 1.3% gain on Thursday, closing at a 17-year high. Key drivers included strong performances from Dubai Islamic Bank and toll operator Salik, both of which posted notable gains.

In Abu Dhabi, the market climbed 0.8%, with RAK Properties and Abu Dhabi Islamic Bank among the top performers, signaling increased investor appetite in the real estate and banking sectors.

Saudi Arabia’s Tadawul index rose for a fourth consecutive session, up 0.9%. Heavyweights such as Al Rajhi Bank and Saudi Aramco helped lift the index as market participants priced in a lower risk premium following the truce.

Qatar’s stock exchange also posted gains, rising 0.4%, supported by strong activity in financial and industrial stocks including Al Rayan Bank and Industries Qatar.


Stabilizing Oil Prices and Lower Shipping Costs
Oil prices held steady throughout the week, reflecting improved sentiment and reduced concerns over disruptions in the Strait of Hormuz. This stability in the energy markets contributed to the rally, as several Gulf economies are closely tied to oil revenues.

Additionally, shipping and insurance costs across the Gulf declined as tensions eased. VLCC freight rates dropped significantly, benefiting regional exporters and importers alike.

Analysts Cautious but Optimistic
Market analysts noted that while the ceasefire has brought immediate relief, the sustainability of the market rebound depends on long-term political stability and continued diplomatic engagement in the region.

"This rally reflects a strong shift in sentiment, but any disruption in the ceasefire could reverse these gains," said one regional market strategist.

For now, Gulf investors appear optimistic, taking advantage of the temporary calm to re-enter the markets, especially in sectors such as banking, infrastructure, and energy.

Comments

Post a Comment

Popular posts from this blog

Image
Dubai’s DFSA Reports 22% Growth in First Half of 2024 The Dubai Financial Services Authority (DFSA) has announced a robust 22% growth in its financial sector for the first half of 2024, underscoring the continued strength and dynamism of Dubai’s financial services industry. This impressive growth highlights the resilience and expansion of the Dubai International Financial Centre (DIFC), a global financial hub. The DFSA’s report reveals that this growth is driven by increased business activity, expansion of financial services, and enhanced regulatory frameworks that foster a competitive and innovative environment. The growth encompasses various sectors within the financial services industry, including banking, asset management, insurance, and fintech. The DFSA has seen a significant uptick in new firms and investments, reflecting confidence in Dubai’s financial ecosystem and its role as a gateway for international business. “The 22% growth is a testament to the strength and adaptability...
Read more
Image
Emirates NBD's Acquisition of Emirates Islamic Bank (EIB) Emirates NBD, the largest bank in Dubai by assets, has launched a mandatory cash offer to acquire the remaining 0.11% of shares in Emirates Islamic Bank (EIB), a subsidiary that operates under the Emirates NBD Group. The bank has put forward an offer price of AED 11.95 per share, which values the total outstanding stake at approximately AED 69.88 million. This strategic acquisition is part of Emirates NBD’s ongoing efforts to consolidate its operations and streamline its business structure, further enhancing its operational efficiency. Following the successful completion of the transaction, Emirates NBD plans to integrate EIB fully, but EIB will continue to operate under its own brand name. The transaction is expected to result in the delisting of EIB’s shares from the Dubai Financial Market (DFM). Once the offer is completed, Emirates NBD will hold 100% ownership of Emirates Islamic Bank, thereby further strengthening it...
Read more
Image
Aramco Slashes $40 Billion in Dividends Amid Saudi Fiscal Pressures Saudi Aramco, the world’s most valuable oil company, has announced a major cut in its dividend payouts for 2025, signaling mounting financial pressure on the Kingdom as it presses ahead with its costly economic transformation plans. The oil giant plans to distribute $85.4 billion in total dividends this year, a significant drop from the $124.2 billion paid in 2024 — a reduction of nearly $40 billion. The move has sparked concerns about Saudi Arabia’s ability to finance its ambitious Vision 2030 agenda, which relies heavily on Aramco's profits to bankroll infrastructure and diversification projects. Performance-Linked Payouts Plunge 98% The sharpest decline came in the form of performance-linked dividends, which are set to fall from $43.1 billion in 2024 to just $900 million in 2025 — a staggering 98% decrease. The dividend cuts reflect a broader decline in Aramco’s financial performance. Net income dropped by 12%, ...
Read more