Global Stock Markets Suffer As Israeli-Gaza Conflict Escalates and Tensions Continue in the Gulf Region

The escalating Israeli bombing in Gaza and new evacuation orders in the northern Strip led to declines in most stock markets in the Gulf region on Wednesday. The Saudi stock market lost 1.03%, with ACWA Power and Saudi National Bank shares taking a hit. Geopolitical tensions and low oil prices are continuing 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, outside of the Gulf region, Egypt’s leading stock index fell by 3.2% as most listed stocks declined, including that of Commercial International Bank. Despite signing a financial support package with the IMF, Egypt’s growth is expected to be slower this year with an anticipated acceleration next year.

In the UAE, stocks closed the mid-week session relatively stable, with Dubai market up slightly and Abu Dhabi down. Qatar, Kuwait, Bahrain, and Muscat all experienced various degrees of decline or growth in their stock markets. The UAE is expected to have the fastest growth in the region due to its diversification efforts and strong position as a global trade hub.