Gulf Markets on Decline as Israeli-Palestinian Conflict Intensifies and Geopolitical Tensions Weigh on Saudi Stock Market

On Wednesday, the stock markets in the Gulf region witnessed declines as Israeli bombing intensified in Gaza and the military conducted new evacuation operations in the northern Strip. The Saudi index dropped by 1.03% due to declines in ACWA Power and Saudi National Bank shares. A Reuters poll revealed that slower economic growth is expected in Saudi Arabia this year, with the UAE anticipated to have the fastest growth in the region.

Geopolitical tensions and low oil prices continued to weigh on the Saudi stock market, which saw losses for the second consecutive session. In a separate development, King Salman entered a hospital in Jeddah for routine examinations. In the UAE, stock markets closed the mid-week session relatively stable, with the Dubai index rising slightly while the Abu Dhabi market saw a slight decline.

Other market movements in the region included a decline in the Qatari index, while the Kuwaiti and Bahraini markets also experienced losses. However, the Muscat Market index rose slightly. Outside of the Gulf region, Egypt’s leading stock index fell by 3.2%, with Commercial International Bank among those experiencing declines despite slower growth projections for this year, it is expected that Egyptian economy will accelerate next year according to a Reuters poll