"The Center": Kuwaiti stocks rise, supported by gains in the main market
The Kuwait Financial Centre (Markaz) stated in its monthly report on market performance for August 2026 that the Kuwait Stock Exchange concluded the month with a positive performance. The general market index rose by 1.6%, driven by a 5.7% increase in the main market index, while the first market index rose by 0.8%. By sector, the basic materials and consumer goods sectors recorded monthly gains of 14% and 9.5%, respectively. The banking sector remained largely stable, posting a slight increase of 0.1%, amid mixed performance among leading stocks.
The Centre noted that the Kuwaiti economy maintained its resilience in the face of regional geopolitical challenges, benefiting from strong sovereign financial conditions, continued credit expansion, and improved activity in the real estate market. In the first half of 2026, Kuwait Petroleum Corporation awarded 129 contracts worth approximately KD 2.2 billion, aimed at increasing production capacity, accelerating exploration and drilling activities, and upgrading oil field infrastructure.
Highlighting the country’s strong financial position, Fitch Ratings affirmed Kuwait’s sovereign credit rating at AA- with a stable outlook, citing the nation’s substantial financial reserves. Real estate activity strengthened in July, with sales rising 24% month-on-month to KD 395 million, marking the highest level in three months, supported by growth in the commercial and investment sectors.
Domestic credit market growth remained at healthy levels, despite a slight decline in July, influenced by a 2% month-on-month drop in lending to financial institutions. Conversely, credit extended to the business sector rose by 0.7%, and credit to individuals increased by 1.2% month-on-month. Additionally, resident deposits grew by 9.8% year-on-year in July, supported by inflows from both the public and private sectors.
The report indicated that Gulf markets recorded strong performance in August. The S&P Composite Gulf Markets Index rose by 3.8%, supported by renewed diplomatic efforts to de-escalate regional tensions and signs of progress toward reopening the Strait of Hormuz. The Saudi Tadawul Index climbed 5.1%, driven by gains in major leading stocks, including Saudi Arabian Mining Company (Ma’aden), which surged 16.8% following the announcement of a joint venture with Aramco for mineral exploration and hard rock mining.
The Dubai Financial Market Index rose by 0.7% in August, supported by gains in major bank stocks. The share price of Emirates NBD increased by 0.3% during the month, following its agreement to acquire HSBC’s retail banking business in Egypt. Abu Dhabi Securities Exchange shares ended August on a positive note, rising by 0.9%, as strong corporate results continued to bolster investor confidence. However, renewed geopolitical tensions limited the overall momentum of Gulf markets, which remain sensitive to shifts in US monetary policy.
Gulf economic activity faced pressure from geopolitical developments, trade challenges, and weak performance in the oil sector, while resilient non-oil sectors and strong financial positions continued to support Gulf economies.
The Centre’s report noted that US and international markets recorded strong gains in August, supported by positive second-quarter 2026 earnings, particularly among major technology companies benefiting from sustained AI-related demand. The S&P 500 Index rose by 2.6%, the Morgan Stanley Global Index climbed by 2.5%, and the tech-heavy Nasdaq Composite advanced by 4.2%, recovering after two consecutive months of declines. SpaceX shares surged 32.6% in August, supported by positive Q2 results that showed revenue growth of 92% year-on-year.
US Treasury yields declined slightly in August, after an expanded bond buyback program implemented by the Treasury Department provided temporary support for trading liquidity. The 10-year yield remained steady at 4.75%, while the 30-year yield fell by 5 basis points to 5.22%. The US Treasury doubled the maximum limit for long-term bond buybacks to $4 billion per operation, aiming to enhance market liquidity and reduce borrowing costs, following the rise in 30-year Treasury yields to their highest levels in several decades.
On the other hand, Brent crude prices rose by 0.4% in August, closing at $90.50 per barrel, remaining above pre-geopolitical development levels. Escalating geopolitical risks following military confrontations in the Strait of Hormuz kept prices elevated, amid concerns over potential supply disruptions.
In conclusion, the Centre predicted that international investors would closely monitor US data for signs of the future trajectory, and that global equities would likely be influenced by the momentum in the technology sector and company-specific catalysts, including the anticipated initial public offering of Anthropic. Gulf markets, meanwhile, are expected to be affected in the coming month by developments in oil markets, potential shifts in the ongoing geopolitical conflict, and updates on US monetary policy.
