Key Takeaways
- Most Gulf markets ended higher as investors assessed potential U.S.-Iran talks.
- Saudi Arabia’s benchmark index rose 0.4% with Saudi National Bank gaining 2.2%.
- Dubai’s main share index advanced 1.8%, its biggest one-day gain since June 18.
Gulf stock markets saw gains on Tuesday as investors weighed the prospects of U.S.-Iran talks, with Saudi Arabia's benchmark index rising by 0.4%. The country’s largest lender, Saudi National Bank, contributed to this rise by gaining 2.2%.
The optimism was further bolstered by strong corporate earnings reports, particularly from Saudi Aramco, which reported a 44% increase in second-quarter net profit to $32.69 billion, up from $22.67 billion the previous year.
However, despite these gains, oil major Saudi Aramco finished slightly lower at 0.4%, reflecting some caution among investors amid ongoing geopolitical tensions and renewed threats from U.S. President Donald Trump.
U.S. Treasury Secretary Bessent stated that an agreement to reopen the strategic Strait of Hormuz could be reached as early as Tuesday or Wednesday, providing a positive outlook for regional markets.
In Dubai, the main share index saw its biggest one-day gain since June 18, rising by 1.8%, with blue-chip developer Emaar Properties contributing significantly to this rise by jumping 6.5%. Abu Dhabi's index also gained 1.6% as Abu Dhabi Islamic Bank climbed 7.2%.
Market sentiment was supported by optimism about a possible return to diplomacy, though conflicting messages from the U.S. and Iran, along with renewed threats from Trump, could keep investors cautious, according to Milad Azar, market analyst at XTB MENA.
Qatar's index fell 0.4%, with its largest lender, Qatar National Bank, down 0.2%. Outside the Gulf, Egypt’s blue-chip index closed 0.8% higher as business sentiment in the non-oil private sector picked up in July, despite operating conditions remaining in contraction territory.
Other markets in the region also saw mixed performances: Bahrain was flat at 1,956; Oman lost 0.2% to 7,335; Kuwait down 0.2% to 9,295.
