Gulf Markets Rally as Oil Prices Surge, Saudi Index Records Fourth Consecutive Gain

Oil prices, a key driver for the Gulf's financial market, saw a surge of over 4% on Friday, rebounding from a four-month low. This uptick was supported by US sanctions on some Russian oil shippers. Saudi Arabia’s benchmark index gained 0.5%, propelled by a 0.3% increase in the shares of oil giant Saudi Aramco and a notable 1.5% advancement in the country’s largest lender, Saudi National Bank.

In Qatar, the index closed 0.2% higher, primarily influenced by a 1% rise in Qatar National Bank, the Gulf’s biggest lender.

Dubai experienced an upward trend due to expectations of an end to rate hikes, while Abu Dhabi saw a slip. A softer tone in US economic data last week led to increased speculation of rate cuts, causing Treasury yields to decrease and equity markets to rise. The monetary policy in the Gulf Cooperation Council (GCC) is often guided by the decisions of the US Federal Reserve, as most regional currencies are pegged to the dollar.

Beyond the Gulf region, Egypt’s blue-chip index surged by 2.1%, driven by a significant 3.8% jump in Commercial International Bank (CIB). The bank secured a $150 million loan from the European Bank for Reconstruction and Development (EBRD) to strengthen its capital base.

Furthermore, the International Monetary Fund (IMF) Managing Director, Kristalina Georgieva, stated on Friday that the Fund is “seriously considering” a possible augmentation of Egypt’s $3 billion loan program. This consideration is in response to economic challenges posed by the Israel-Hamas war.

Market Movements:

- Saudi Arabia rose 0.5% to 11,137

- Qatar gained 0.2% to 10,241

- Egypt surged 2.1% to 24,900

- Bahrain eased 0.1% to 1,944

- Oman added 0.1% to 4,622

- Kuwait remained flat at 7,294