Regional Markets Dip Amid Tariff Worries

Gulf stock markets ended the week lower as fresh U.S. tariff announcements and uncertainty over potential Federal Reserve policy moves weighed on investor sentiment.

In the United Arab Emirates, Dubai’s main index fell 0.8%, driven by losses in major stocks such as Emirates NBD, which declined 2.4%, and Salik Company, down 1.1%. This drop came despite the index reaching a 17.5-year high earlier in the week. Abu Dhabi’s index slipped 0.5%, with Abu Dhabi Commercial Bank losing 3.4% and Commercial Bank International plunging 7.8% after reporting a 5% fall in quarterly profit.

Some companies managed to buck the downward trend. Gulf Navigation gained 5.8% after raising its foreign ownership limit to 100%, while Multiply Group advanced 5.1%. National Bank of Fujairah surged 9.6% following a 67% increase in second-quarter earnings.

Global market sentiment was similarly cautious. According to industry data, global equity funds recorded $7.82 billion in outflows during the week ending August 6. Investors shifted towards safer assets, with money market funds attracting $135.37 billion—the largest inflow since January—while bond funds drew $20.98 billion.

In Asia, the MSCI Asia-Pacific index slipped 0.2%, reflecting concerns over weaker U.S. economic data and the impact of trade barriers. Earnings reports from multinational firms, including Yum Brands and Caterpillar, highlighted the growing pressure from tariff-related costs.

Outlook: Analysts expect Gulf markets to remain volatile in the short term, with trade tensions and global economic uncertainty likely to continue influencing investor behavior. Any resolution on tariffs or clearer central bank policy signals could help restore confidence.