Gulf Markets Decline Amid Rising Regional Tensions
Geopolitical tensions are significantly impacting market performance across the Gulf region, leading to a cautious trading environment as investors remain on the sidelines.
Most Gulf markets on Thursday experienced declines due to heightened geopolitical tensions in the region.
On October 23, 2024, stock exchanges in the Gulf were notably affected by the fallout from Israel’s recent military actions, including the elimination of a key Hezbollah figure, which has escalated concerns among investors.
Israeli strikes targeted the southern suburbs of Beirut on Wednesday, while Hezbollah announced it fired precision-guided missiles at Israeli positions for the first time. This escalation occurred as U.S. Secretary of State Antony Blinken visited the region, advocating for a ceasefire in both Gaza and Lebanon.
Additionally, Israeli strikes were reported to have struck the Syrian capital, Damascus, early on Thursday.
Key Market Movements:
- Saudi Arabia: The main stock index fell by 0.4%, influenced by a 0.5% drop in Al Ter Group and a 0.6% decline in Al Rajhi Bank. Banque Saudi Fransi also reported a 1% decrease following disappointing quarterly earnings
- Abu Dhabi: The index decreased by 0.2%, reflecting cautious investor sentiment amid changing expectations regarding U.S. interest rates
- Qatar: The index dipped by 0.3%, with Qatar National Bank, the largest bank in the Gulf, also experiencing a 0.3% drop
The International Monetary Fund’s recent revision of Saudi Arabia’s GDP growth forecast to 1.5% for 2024 further contributed to market unease, with expectations of a recovery to 4.6% in 2025
Overall, these developments indicate that geopolitical tensions are significantly impacting market performance across the Gulf region, leading to a cautious trading environment as investors remain on the sidelines.
