Gulf financial markets witnessed remarkable heights after the decision of the central banks in the region to reduce interest rates by 25 basis points, in line with the US Federal Reserve policy. This step strengthened the appetite of investors towards strategic sectors and raised major indicators, while some markets remained under the pressure of local factors that prevented the gains from continuing
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Strong gains in Saudi Arabia and Abu Dhabi
The Saudi public index increased by 1.2% to continue its gains for the third consecutive session, supported by the shares of the facilities and technology sectors. The share of the Arab Company for Internet and Communications has jumped by more than 5% after signing a digital infrastructure agreement with Aramco, while Aramco’s share increased by 1.5%. The shares of the MBC Group also witnessed a 10% jump after a strategic deal with the Saudi Public Investment Fund. In Abu Dhabi, the index rose 0.6% thanks to gains in energy and consumer commodities, as ADNOC‘s drilling shares rose 4.4% amid active trading, along with ADNOC shares for distribution, supply and services
Division in Dubai and rise in Qatar
On the other hand, the Dubai Market Index decreased by 0.2% after it dispelled its early gains, due to the decrease in the shares of banks and real estate, despite the relative support of the Emaar Real Estate share, which rose by more than 1% after abandoning a plan to sell a stake in its entity in India. In Qatar, the general index rose 0.7% to continue its rising course with the support of bank shares, as Qatar National Bank shares rose by 1.4% and Qatar Islamic Bank 1.7%
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Future indicators and economic connotations
Useful reducing decisions reflect the direction of the Gulf central banks to support economic growth and keep pace with global monetary policy, with positive expectations that the UAE economy grows to 4.9% in 2025 compared to 4.4% previously. These moves are seen as an additional catalyst to enhance liquidity and investments in the energy, real estate and financial services sectors, despite the continued discrepancy in the performance of some markets such as Dubai, which faces local pressure. However, the general scene of the Gulf markets remains positive in the medium term thanks to the facilitation policies and the expectations of non -oil growth
Recent developments show that the Gulf markets are in the stage of strategic positioning, where interest reduction decisions constitute a turning point towards enhancing investor confidence and supporting the vital sectors, at a time when the importance of balance between monetary policies and financial stability to ensure the sustainability of growth is increasing
