Dubai, UAE – Major Gulf stock markets recorded significant gains in early trading on Monday. These gains were driven by a double boost from rising oil prices and growing expectations of a US interest rate cut next year.
Oil factor: Supply tensions resurface
Oil prices, the primary driver of the region’s economies, helped boost investor sentiment. This came after reports of the US intercepting an oil tanker off the coast of Venezuela, renewing concerns about the stability of global supplies and driving prices higher.
Performance of Gulf markets
The Saudi Stock Exchange (TASI) saw its main index rise by 0.2%. Shares of Ma’aden stood out with a 3% jump, benefiting from the Ministry of Energy’s approval to allocate the necessary feedstock for the massive fourth phosphate project.
Dubai Financial Market: The index rose by 0.2%. The strongest support came from Emaar Properties shares, which rose by 1.8% (and later reached gains of 2.89%).
Abu Dhabi Securities Exchange: Recorded the strongest performance among its peers with an increase of 0.5% (with the VADAX index reaching 0.69%).
Qatar Stock Exchange: It rose by 0.1% thanks to gains in shares of Qatar Industries Petrochemicals, which increased by about 1.1%.
The impact of “interest rates” and the dollar peg
Gulf markets are cautiously awaiting US monetary policy. The FedWatch tool indicates expectations of two interest rate cuts in 2026. Since most Gulf currencies are pegged to the dollar, any easing of US monetary policy is directly reflected as a boost to liquidity and growth in the region’s markets.
Summary of the situation
These gains reflect the ability of Gulf markets to capitalize on sectoral opportunities, such as mining and real estate. They are also benefiting from developments in global energy markets and monetary policy in parallel.
