Gulf Markets Show Resilience Amid Geopolitical Risks
Gulf markets experienced a decline in October 2026 due to geopolitical tensions, despite their resilience and increased liquidity in Saudi Arabia, Qatar, and Muscat.
Translated by Qiyas from الأنباء — Original source
A report issued by Kuwait Investment Company stated that amid most markets facing selling pressure due to escalating regional geopolitical risks, ongoing tensions related to the war in the region, concerns about navigation and energy supplies through the Strait of Hormuz, rising oil prices, and growing expectations that interest rates will remain at elevated levels for longer due to global inflationary pressures, Gulf stock markets posted negative performance in October 2026, with broad declines in key indices, although the severity of losses varied across markets.
The Abu Dhabi Securities Market led the list of the most declining Gulf markets in October, with the General Market Index falling by 6%, followed by the Saudi Tadawul Index, which recorded a monthly loss of 4.97% amid escalating military tensions with Yemen. Qatar’s stock exchange recorded the smallest losses during the month, at 1%. The Kuwait Stock Exchange’s General Market Index also declined by approximately 3.71%, and the Dubai Financial Market Index fell by 3.18%, while the Kuwait Stock Exchange’s First Market Index dropped by approximately 3%. Consequently, the S&P GCC Index declined by approximately 4.78% in October 2026.
Monthly liquidity in Gulf stock markets also declined in most markets during October 2026. Trading value fell by approximately 39.5% at the Kuwait Stock Exchange, by 24.5% at the Dubai Financial Market, and by 17.1% at the Abu Dhabi Securities Market, while trading value rose in the Saudi stock market, Qatar Stock Exchange, and Muscat Securities Market by approximately 6%, 3%, and 39%, respectively. The Saudi stock market accounted for 54% of total Gulf stock exchange liquidity, followed by the Abu Dhabi Securities Market at approximately 14%, the Kuwait Stock Exchange at 12%, and the Dubai Financial Market at 8%.
Despite these challenges, Gulf markets demonstrated considerable resilience in the face of geopolitical risks, supported by the strength of the financial sector, continued government spending at healthy levels, improved net profits for a large number of leading companies, and inflows of liquidity into markets, despite declines from 2025 levels due to foreign investment factors in Gulf stock exchanges, geopolitical tensions, and uncertainty.
Disclaimer: This document does not constitute an offer to sell or a solicitation to buy any securities. Past historical returns achieved by all Kuwait Stock Exchange indices and Gulf stock markets cannot be relied upon for future results, and past performance is not necessarily indicative of, nor does it guarantee, future performance.
