Most Gulf stock markets closed higher as easing geopolitical tensions improved investor sentiment across the region, encouraging renewed risk appetite and selective buying in key sectors.
Market confidence strengthened following signs of de-escalation in regional political concerns, which had previously weighed on equities. Investors appeared more willing to re-enter the market, particularly in blue-chip stocks and sectors closely tied to economic growth, such as banking, energy, and real estate.
Saudi Arabia’s benchmark index advanced, supported by gains in major financial and petrochemical stocks. Banking shares benefited from expectations of stable interest rates and resilient domestic demand, while energy-related stocks tracked steady oil prices, which remained supported by controlled supply and consistent global demand.
In the United Arab Emirates, both Abu Dhabi and Dubai markets posted gains. Abu Dhabi was lifted by strong performances in industrial and energy-linked stocks, while Dubai saw support from real estate and financial shares as investor confidence improved. Analysts noted that easing geopolitical risks tend to attract foreign inflows into UAE markets due to their liquidity and relative stability.
Qatar’s stock market also edged higher, aided by gains in banking and transport stocks. Improved regional sentiment and expectations of sustained government spending helped underpin market optimism, despite cautious global economic signals.
Meanwhile, Kuwait and Oman recorded modest gains, reflecting broader regional stability. However, trading volumes remained moderate as investors continued to monitor global factors such as inflation trends, interest rate outlooks, and movements in oil prices.
Market analysts cautioned that while easing geopolitical tensions have provided short-term relief, investors remain vigilant. Any resurgence of regional uncertainty or unexpected global developments could quickly affect sentiment. Nonetheless, the Gulf markets continue to benefit from strong fiscal positions, ongoing economic diversification efforts, and supportive government policies.
Overall, the positive performance across most Gulf markets highlights growing investor confidence amid a calmer geopolitical environment, reinforcing the region’s appeal as a relatively stable destination for capital in emerging markets.
