Most stock markets in the Gulf ended higher on Wednesday, supported by rising crude prices, as investors await U.S. economic data this week that could influence Federal Reserve policy decisions.
Oil prices, a key driver for Gulf markets, climbed more than 1% after Russia said talks with U.S. officials in Moscow failed to reach a compromise on a potential Ukraine peace deal, which could have eased sanctions on its oil sector.
In Saudi Arabia, the benchmark index (.TASI) rose 0.4% to 10,575. Etihad Etisalat Company advanced 2.1%, while Saudi Aramco Base Oil Company surged 10% to 93.95 riyals after HSBC raised its price target to 115 riyals from 107 riyals. The kingdom approved its 2026 state budget on Tuesday, forecasting a narrower fiscal deficit of 165 billion riyals ($44 billion), or about 3.3% of gross domestic product, as it shifts spending toward priority sectors such as industry and logistics to boost non-oil revenue.
Qatar’s index (.QSI) gained 0.5% to 10,723, with Qatar Islamic Bank finishing 1.2% higher.
In the United Arab Emirates, Dubai’s main share index (.DFMGI), returning from a two-day break for National Day celebrations, advanced 1.2% to 5,907, with Emirates NBD gaining 3.5%. Abu Dhabi’s index (.FTFADGI) rose 0.7% to 9,871.
Investors are closely monitoring upcoming U.S. releases, including Wednesday’s November ADP private payrolls report and Friday’s delayed September Personal Consumption Expenditures Index, the Federal Reserve’s preferred measure of inflation. U.S. monetary policy shifts have a significant impact on Gulf markets, where most currencies are pegged to the dollar. Futures data from CME’s FedWatch Tool show an 88% probability of a Federal Reserve rate cut at next week’s meeting, up from 85% a week earlier.
Outside the Gulf, Egypt’s blue-chip index (.EGX30) jumped 1.8% to 41,261, hitting an all-time high, with Commercial International Bank rising 1.8%. Egypt’s non-oil private sector recorded its fastest growth in five years in November, driven by sharp increases in output and new orders, according to a business survey released Wednesday.
Other Gulf market movements included Bahrain’s index (.BAX), which eased 0.1% to 2,048; Oman’s (.MSX30) up 1.1% to 5,837; and Kuwait’s (.BKP) rising 0.6% to 9,425.
($1 = 3.7527 riyals)
