Gulf Stock Markets Experience Downturn Amid Trade Concerns

Major stock exchanges in the Gulf region experienced declines in early trading on Thursday. Investor sentiment remained subdued due to uncertainties surrounding US tariff policies and persistent fears of a potential economic slowdown.

Market participants are keenly awaiting clear indications of headway in negotiations involving the US administration under President Donald Trump and its trading partners, notably the ongoing discussions with Japan. The future of prospective discussions with China remains a primary concern.

The Saudi Arabian benchmark index showed a decrease of 0.5%, influenced by a 1.5% drop in ACWA Power Company shares and a 1.3% dip in Saudi Arabian Mining Company’s value.

Investors are also carefully considering remarks made by Federal Reserve Chair Jerome Powell, who cautioned about the potential for slower economic expansion and increasing inflation as a result of tariffs.

Market Performance Overview

  • Dubai’s main share index saw a slight decrease of 0.1%, impacted by a 1.6% fall in the value of blue-chip developer Emaar Properties.
  • The Abu Dhabi index also experienced a decrease of 0.1%.
  • Qatar’s benchmark index fell by 0.5%, with Commercial Bank shares declining by 2.6% following a significant decrease in first-quarter earnings.

In contrast, oil prices saw gains, buoyed by expectations of tighter supply resulting from new sanctions imposed by Washington to restrict Iranian oil trade. Commitments from some OPEC producers to implement additional output reductions to offset production exceeding agreed quotas also contributed to the upward trend.