Gulf stock markets swung down this week as traders tried to price in the impact of a war which has quickly escalated, but there were marked differences in performance. Abu Dhabi, Bahrain, and Dubai posted the worst falls, but others proved more resilient: In Kuwait, Oman, and Qatar, markets initially fell before recovering some ground, while Riyadh’s Tadawul All-Share Index ended the week slightly up.
That variety reflects a range of factors. The UAE has been hit harder by Iranian drones and missiles than its neighbours, and its economy looks vulnerable on several fronts: Its oil reserves can’t be exported, and international investors and residents may be rethinking their commitment to the country, at least in the short term. Saudi Arabia has a larger domestic market, kept its airspace largely open, and has Red Sea ports to export crude from.
Individual company performances also play a role. On the Tadawul, shares in Al Moammar Information Systems shot up after it announced an AI data center contract. On the ADX, investment firm Aram Group put dividends on hold to ensure it could support its operations. In Qatar, dairy firm Baladna postponed a planned capital increase, citing market volatility.
