Stock markets across the Middle East experienced significant losses on Sunday, marking their largest drop in five years. The downturn was influenced by falling oil prices and concerns about the potential impact of new tariffs imposed by the US administration.
In Saudi Arabia, the Tadawul index, the benchmark stock market gauge, dropped 6.78%, its worst performance since 2020. The declines were widespread, with sectors such as energy, real estate, and consumer services particularly affected. Shares in Saudi Aramco, the world’s largest oil-exporting company, fell 4.75%.
Other regional markets also experienced significant losses. Kuwait’s stock market dropped by 5.69%, while the Qatar Exchange’s benchmark index slid 4.23%. Real estate and hospitality stocks, including companies such as IFA Hotels and Resorts and Al Tijaria, saw some of the biggest losses.
In Egypt, the EGX 30 fell by 3.34%, and the EGX 70 index dropped by 4.84%. Meanwhile, the Abu Dhabi Securities Exchange and the Dubai Financial Market, which are closed on Sundays, saw declines of 0.76% and 1.51%, respectively, at the close of trading on Friday.
The recent declines come after the United States imposed a baseline tariff of 10% on several countries, including many Middle Eastern and North African nations, through an executive order announced on Wednesday. The tariffs came into effect on Saturday, with some nations like Syria and Iraq facing higher rates of 41% and 39%, respectively. Analysts have expressed concerns that these new tariffs could disrupt global trade and slow down economic growth, leading to broader market volatility.
The GCC (Gulf Cooperation Council) countries, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, along with Egypt, Iran, Lebanon, Morocco, and Yemen, were all subject to the minimum 10% tariff.
Market analysts from Nasser Saidi and Associates noted that the impact of the tariffs was already evident in stock market declines, which have also prompted expectations of potential central bank rate cuts across the region, mirroring those of the US Federal Reserve.
The drop in regional stocks followed similar trends in global equity markets. On Friday, major stock indices, including the S&P 500 and the Dow Jones Industrial Average, suffered losses in response to the tariff announcements, heightening fears of a global trade disruption and an economic downturn.
In oil markets, crude prices also saw a sharp decline. Brent crude, the global benchmark, dropped 6.5% to $65.58 per barrel, while West Texas Intermediate (WTI) fell 7.4% to $61.99 per barrel. These losses came amid tensions between the US and China, with China retaliating against the new tariffs by imposing its own levies on US goods. Opec+’s decision to increase oil supply also contributed to the price decline.
Oil analysts have warned that the ongoing uncertainty in global trade, along with the potential for slower economic growth, could further pressure oil prices in the coming months.
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