On Wednesday, stock markets in the Gulf region experienced declines due to escalating Israeli bombing in Gaza and new evacuation orders in the northern Strip. The Saudi stock market lost 1.03% with ACWA Power and Saudi National Bank shares taking a hit. As a result of these tensions, the economy is expected to grow slower than anticipated this year, impacted by lower oil prices. In contrast, the UAE is expected to have the fastest growth in the region.
Geopolitical tensions and low oil prices continue to weigh on the Saudi stock market, which has seen losses for two consecutive sessions. King Salman was reported to have entered a hospital in Jeddah for routine examinations. Meanwhile, stocks in Dubai closed the mid-week session relatively stable, with Abu Dhabi down slightly. Qatar, Kuwait, Bahrain, and Muscat all experienced various degrees of decline or growth in their stock markets.
Outside of the Gulf region, Egypt saw its leading stock index fall by 3.2% as most listed stocks declined, including that of Commercial International Bank. Despite signing a financial support package with the IMF earlier this year, Egypt’s growth is expected to be slower this year with an anticipated acceleration next year.