Most Gulf markets slide on lower oil prices - Reuters

Most Gulf markets slide on lower oil prices - Reuters

Most stock markets in the Gulf region experienced a decline on Thursday, August 28, ahead of the release of U.S. economic data that could clarify the Federal Reserve's interest rate outlook. The Personal Consumption Expenditures (PCE) Price Index, a key inflation measure, is scheduled for Friday. The U.S. Federal Reserve's stance on interest rates holds significant implications for Gulf economies, where currencies are pegged to the U.S. dollar.

The Saudi Arabian benchmark index (.TASI) fell by 0.7%, driven by a 1.1% drop in Al Rajhi Bank (1120.SE) and a 2.2% decline in ACWA Power Company (2082.SE). Saudi Aramco (2222.SE), the world's most valuable company, was down by 0.2%. Oil giant Saudi Aramco's performance was affected by expectations of lower U.S. fuel demand at the end of the summer travel season and the restart of Russian supply to Hungary and Slovakia through the Druzhba pipeline.

In Qatar, the Qatari index (.QSI) retreated by 1%, with petrochemical maker Industries Qatar (IQCD.QA) losing 2.2%. Dubai's main share index (.DFMGI) was down 0.7%, with blue-chip developer Emaar Properties (EMAR.DU) falling 1.4%. In Abu Dhabi, the index (.FTFADGI) slipped by 0.6%.

Egypt's blue-chip index (.EGX30) edged 0.1% higher, buoyed by a 2.3% rise in Fawry for Banking Technology and Electronic Payment (FWRY.CA). Egypt's Prime Minister Mostafa Madbouly discussed activating a $7.5 billion "partnership package" with his Qatari counterpart.

Investors are cautious ahead of the U.S. PCE inflation data, which could influence the region's monetary policies. Oil prices, a key catalyst for the Gulf's financial markets, have been relatively stable this week but continue to pose a risk due to their current low levels.

Reference List:
[1] https://www.reuters.com/world/middle-east/most-gulf-markets-retreat-ahead-us-economic-data-2025-08-28/
[2] https://www.reuters.com/business/energy/rosneft-net-income-drops-68-first-half-blames-opec-weak-oil-prices-2025-08-30/
[3] https://www.business-standard.com/companies/news/tata-capital-to-float-2-bn-ipo-in-sept-last-week-eyes-11-bn-valuation-125083100158_1.html
[4] https://www.ainvest.com/news/assessing-strategic-economic-impact-ukrainian-drone-attacks-russian-oil-refineries-energy-security-geopolitical-risk-global-oil-markets-2508/