The escalating Israeli bombing in Gaza and new evacuation orders in the northern Strip caused most stock markets in the Gulf region to decline on Wednesday. The Saudi stock market lost 1.03% with ACWA Power and Saudi National Bank shares taking a hit. In addition, the economy is expected to grow slower than anticipated this year due to lower oil prices.
Geopolitical tensions and low oil prices are putting pressure 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, the UAE is expected to have the fastest growth in the region with stocks closing relatively stable during the mid-week session, with Dubai up slightly and Abu Dhabi down. 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. Despite this setback, Egypt’s growth is expected to accelerate next year with an anticipated slowdown this year due to geopolitical tensions and low oil prices weighing heavily on many countries’ economies in the region.
