Stock exchanges in the Persian Gulf: Divergent developments following the conflict in the Middle East

The stock markets in the Gulf states have recorded different developments since the beginning of the conflict in the Middle East, with investors responding to fluctuations in oil prices and geopolitical uncertainty.

The Oman stock index has increased by 9.3% since March 1, while the Saudi stock exchange Tadawul has advanced by 5.8%. In contrast, the DFM index in Dubai has decreased by nearly 16%, and Qatar and Bahrain have lost approximately 4% and 7.2%, respectively.

The growth of the Saudi market is linked to the rise in oil prices, and Oman has benefited from capital inflows from investors seeking safer markets. The price of Brent oil has fluctuated around 100 dollars per barrel, and analyst Damanick Dantes emphasizes that maintaining it above 80 dollars is favorable for Saudi Arabia. In Dubai, the index had a partial recovery, but analysts recommend caution, warning that any potential recoveries could be temporary.

In this context, investors are looking for opportunities, but most prefer a cautious approach until the geopolitical situation is clarified.