DUBAI (MNN); Most Gulf equity markets closed lower on Tuesday as escalating tensions between regional oil powers Saudi Arabia and the United Arab Emirates unsettled investor confidence across the region.
According to LSEG data, Dubai’s benchmark share index fell by around 2 per cent, putting it on track for its sharpest single-day decline since June. Abu Dhabi’s main index also ended lower, shedding 0.9 per cent, while Saudi Arabia’s stock market slipped 0.6 per cent.
The sell-off followed heightened geopolitical tensions after Saudi Arabia declared its national security a red line, just hours after the Saudi-led coalition launched airstrikes on what it described as foreign military support to UAE-backed southern separatists in Yemen. Riyadh also called for the withdrawal of UAE forces from the country.
In Dubai, heavyweight stocks led the decline. Blue-chip developer Emaar Properties dropped 3.5 per cent, while the region’s largest lender, Emirates NBD, fell 1.7 per cent.
Saudi stocks also came under pressure, with Al Rajhi Bank down 0.7 per cent and Saudi National Bank, the kingdom’s largest lender by assets, retreating 1.1 per cent. Shares of oil giant Saudi Aramco edged 0.3 per cent lower.
Oil prices, a key driver of Gulf financial markets, remained largely unchanged. Investors weighed fresh geopolitical developments, including Russia’s accusation that Ukraine attacked President Vladimir Putin’s residence, while also monitoring developments around possible Ukraine peace talks to assess potential supply disruptions.
Elsewhere in the region, Qatar’s benchmark index slipped 0.4 per cent, with Qatar National Bank, the Gulf’s largest lender, losing 0.7 per cent.
Bahrain stood out as the sole gainer, with its market rising 0.4 per cent after the government announced a series of fiscal reform measures a day earlier.
