The escalating Israeli bombing in Gaza and new evacuation orders in the northern Strip caused most stock markets in the Gulf region to decline on Wednesday. The Saudi stock market lost 1.03%, with ACWA Power and Saudi National Bank shares taking a hit. These geopolitical tensions, coupled with lower oil prices, are weighing heavily on the economy and expected to impact its growth this year. Despite this, the UAE is expected to have the fastest growth in the region.
The Saudi stock market has been experiencing losses for two consecutive sessions, as geopolitical tensions and low oil prices continue to weigh on it. King Salman was reportedly admitted to a hospital in Jeddah for routine examinations, adding to uncertainty about the future of the economy. Meanwhile, stocks in Dubai closed relatively stable mid-week, with a slight rise in Abu Dhabi’s market but declines or growth varying across Qatar, Kuwait, Bahrain, and Muscat’s stock markets.
Outside of the Gulf region, Egypt experienced significant losses on its leading stock index as most listed companies declined. Despite signing a financial support package with the IMF earlier this year, Egypt’s growth is anticipated to be slower than expected this year with an anticipated acceleration next year.