In the Gulf region, the stock markets experienced declines on Wednesday as tensions between Israel and Gaza escalated 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. Despite this, a Reuters poll indicated slower economic growth 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. King Salman entered a hospital in Jeddah for routine examinations, adding to concerns about his health. In a separate development, Egypt’s leading stock index fell by 3.2%, with Commercial International Bank among those experiencing declines.
In other parts of the Gulf region, stock markets moved differently. The Dubai index rose slightly while Abu Dhabi market saw a slight decline, and Qatari index declined as well while Kuwaiti and Bahraini markets also experienced losses. However, Muscat Market index rose slightly as well. Outside of these countries, there were no major movements reported in other regional stock markets.
It is worth noting that despite slower growth projections for this year, the Egyptian economy is expected to accelerate next year according to a Reuters poll.
Overall, these developments highlight how geopolitical tensions and other external factors can have a significant impact on stock markets across the Gulf region and beyond. As investors continue to monitor these developments closely, it remains to be seen how they will affect long-term trends in these regions.
