Gulf Markets Rally as Federal Reserve Signals Policy Shift

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In a positive turn of events, major stock markets in the Gulf region experienced a boost in early trade on Thursday, echoing the positive trend in global markets. The surge comes after the U.S. Federal Reserve indicated a shift in its monetary policy.
On Wednesday, the Fed decided to keep interest rates unchanged, and Chair Jerome Powell suggested that the era of tightening monetary policy might be over, given the faster-than-expected decline in inflation.

The Gulf Cooperation Council (GCC), comprised of six member countries, typically aligns its monetary policy with decisions made by the Fed, as most regional currencies are pegged to the U.S. dollar.

GULF Stock markets

In Qatar, the benchmark Stock index (.QSI) saw a notable 1.3% increase, with all stocks showing positive movements. Leading the way was Qatar National Bank (QNBK.QA), the region’s largest lender, which recorded a 2% climb. Qatar Islamic Bank (QISB.QA) and Commercial Bank (COMB.QA) also experienced gains of 1.5% and 2.2%, respectively.

Meanwhile, Saudi Arabia’s benchmark stock index (.TASI) rose by 0.7%, supported by widespread gains in all sectors. Elm Company (7203.SE) marked a 1.9% increase, while Al Rajhi Bank (1120.SE), the world’s largest Islamic lender, climbed by 2%.
In Dubai, the benchmark stock index (.DFMGI) showed a 0.7% increase in early trade, with positive movements across all sectors. Emaar Properties (EMAR.DU) gained 1.6%, and Dubai Electricity and Water Authority (DEWAA.DU) surged by 2.5%.
In Abu Dhabi, the benchmark stock index (.FTFADGI) advanced by 0.2%, thanks to a 1.1% gain in the blue-chip developer Aldar Properties (ALDAR.AD) and a 1.8% rise in Abu Dhabi Ports Co (ADPORTS.AD).

Investors in the Gulf Market region are optimistic as the Federal Reserve’s dovish stance provides a favorable environment for market growth. The positive momentum is expected to continue, offering potential opportunities for investors in the Gulf markets.

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