Gulf Markets Decline Due to Regional Tensions

Most major stock markets in the Gulf retreated in early trading on Tuesday due to rising tensions in the region, although the Dubai index moved against the trend. The Saudi index fell by 0.2%, influenced by a 0.9% drop in shares of Al Rajhi Bank. It appears that the Saudi index is on track to end a 13-day winning streak. However, the decline was mitigated by a 3.0% increase in shares of Saudi Telecom Company after it announced a net annual profit of 13.30 billion riyals ($8 billion), up from 12.71 billion riyals last year. The telecom company also proposed an extraordinary dividend of one riyal per share for 2023, in addition to regular dividends of 0.40 riyals per share. The Qatari index decreased by 0.3%, affected by a 0.7% loss in Qatar Islamic Bank and a 0.5% drop in shares of Qatar National Bank, the largest bank in the Gulf. Oil prices, a major driver for financial markets in the Gulf region, remained stable near three-week highs due to rising tensions in the Middle East and a rebound in Chinese demand. The Abu Dhabi index fell by 0.2%, impacted by a 1.1% decline in shares of First Abu Dhabi Bank, the largest bank in the UAE. Meanwhile, the Dubai index rose by 0.1%, supported by a 3.2% increase in shares of Dubai Commercial Bank.