September 8, 2025 | Riyadh, Saudi Arabia (The Arabian Wall Street) — Major Gulf stock markets retreated on Monday as early optimism over a possible U.S. Federal Reserve rate cut and firm oil prices gave way to worries about oversupply in crude markets.
Saudi Arabia’s benchmark index fell 0.9% to its lowest level in nearly two years, with broad-based sector declines dragging the market down. Al Rajhi Bank and Saudi Aramco each lost 0.9%, while Theeb Rent a Car slipped more than 2% as its shares traded ex-dividend.
In the UAE, Dubai’s main share index dropped 0.9%, with almost every sector closing lower. Emirates NBD fell nearly 3%, and telecom operator du slid 3% after announcing a secondary share sale linked to Mubadala’s partial divestment. The deal is expected to raise about AED 3.39 billion ($923 million), though du will not receive proceeds.
Abu Dhabi’s index edged 0.7% lower, weighed down by a steep 7.5% fall in Abu Dhabi Commercial Bank. It was the bank’s sharpest decline in more than three years, triggered by a planned rights issue priced 30% below its last close to raise AED 6.1 billion ($1.66 billion).
Qatar’s stock index slipped 0.6%, hurt by a 0.7% decline in Qatar Islamic Bank. Investor sentiment, initially buoyed by expectations of a Fed cut, weakened as markets priced in a 25-basis point reduction with little chance of a larger move, according to the CME FedWatch tool.
Regional snapshot
- Saudi Arabia: down 0.9% to 10,497
- Abu Dhabi: down 0.7% to 9,960
- Dubai: down 0.9% to 5,935
- Qatar: down 0.1% to 11,125
- Egypt: up 0.4% to 34,602
- Bahrain: up 0.1% to 1,938
- Oman: down 0.9% to 5,078
- Kuwait: up 2% to 9,266
While most Gulf markets slipped, Kuwait’s bourse outperformed, jumping 2%, supported by strong buying momentum across blue-chip stocks.
For Arabian Wallstreet, the selloff underscores how sensitive Gulf equities remain to U.S. monetary policy and oil market fluctuations, even as local fundamentals and corporate actions shape short-term investor sentiment.
