Gulf markets displayed mixed performance on Tuesday as investors approached trading with caution ahead of the U.S. presidential election. The anticipation surrounding the election, which sees candidates Donald Trump and Kamala Harris campaigning fiercely in critical states like Pennsylvania, has influenced market sentiment in the Middle East. The U.S. election’s impact on Gulf markets continues to be significant, reflecting both regional and global economic dynamics.
Saudi Arabia’s Market Takes a Dip
Saudi Arabia’s primary index dropped by 0.8%, primarily impacted by a 1% decline in shares of aluminum products manufacturer Al Taiseer Group and a 0.5% decrease in Al Rajhi Bank. Energy giant Saudi Aramco also faced a slight decline of 0.6% following its report of a 15.4% drop in Q3 profits. This drop is linked to lower global crude prices and weaker refining margins, though Aramco maintained its quarterly dividend at $31.1 billion. Additionally, Saudi Arabia announced a Q3 budget deficit of 30 billion riyals ($8 billion), attributed to declining oil revenues as the country navigates the effects of fluctuating energy prices.
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Other Gulf Markets Show Mixed Trends
Dubai’s main index slid by 0.2%, with toll operator Salik Company losing 1.2%, and Dubai Islamic Bank showing a slight dip of 0.2% ahead of its earnings release. In Abu Dhabi, the index remained stable, demonstrating relative resilience amid the region’s uncertainties.
Qatar Bucks the Trend with Small Gains
Qatar’s benchmark index displayed a modest 0.1% increase, aided by a 0.4% rise in Qatar Islamic Bank shares. This gain reflects some confidence in the country’s financial sector, despite the widespread cautious sentiment.
Oil Prices and Market Outlook
As a significant catalyst for Gulf financial markets, oil prices traded in a narrow range following a 2% gain in the prior session. This rise came after OPEC+ decided to delay its planned increase in production, underscoring the organization’s intent to balance the market amidst ongoing geopolitical events.
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