Gulf stock markets were mostly subdued on Monday amid lingering uncertainty over U.S. trade policy, but Saudi Arabia’s bourse stood out with strong gains in the real estate sector.
U.S. President Donald Trump reaffirmed his stance on enforcing tariffs, citing a recent dispute with Colombia over migration issues. The move sent a strong message that the U.S. would act decisively to protect its interests.
Qatar’s index (QSI) remained flat, while Dubai’s main index (DFMGI) slipped 0.1%, pressured by a 2.1% drop in Emaar Development shares. Abu Dhabi’s index (FTFADGI) also dipped 0.1%.
Oil prices, a key driver of Gulf financial markets, fell after President Trump urged OPEC to cut prices and unveiled plans to boost U.S. oil and gas output.
In contrast, Saudi Arabia’s benchmark index (TASI) gained 0.4%, bolstered by a 10% surge in Jabal Omar Development Company and a 9.8% jump in Makkah Construction and Development Company. The Capital Market Authority announced that foreign investors could now invest in Saudi-listed real estate firms operating in Mecca and Medina starting Jan. 27, driving optimism.
Additionally, Saudi Arabia strengthened ties with Italy, with both nations signing cooperation and industrial agreements worth $10 billion, Italian Prime Minister Giorgia Meloni revealed on Sunday.