On February 6, 2025, Gulf stock markets exhibited mixed responses following recent policy proposals from U.S. President Donald Trump. A notable proposal involved the United States taking control of the Gaza Strip to facilitate economic development, contingent upon the relocation of its Palestinian residents. This initiative, which marks a significant departure from longstanding U.S. policy on the Israeli-Palestinian conflict, has elicited varied reactions across the Middle East and globally.
Market Performances:
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Saudi Arabia: The benchmark index rose by 0.2%, driven by a 4.1% increase in Saudi Arabian Mining Company.
Dubai: The main share index advanced by 0.5%, supported by a 0.7% uptick in Emaar Properties and a 3.3% gain in Parkin Company. -
Abu Dhabi: The index declined by 0.2%, primarily due to a 1.5% decrease in First Abu Dhabi Bank, which reported a fourth-quarter net profit of 4.2 billion dirhams—a 4% year-over-year increase but a significant drop from the previous quarter.
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Qatar: The benchmark index fell by 0.4%, influenced by a 0.9% decline in Qatar National Bank and a 2.4% decrease in Qatar Electricity and Water Company.
These market movements underscore the sensitivity of Gulf economies to U.S. foreign policy decisions, especially those affecting regional stability. Investors are closely monitoring the potential implications of President Trump's proposals on the geopolitical landscape and economic conditions in the Middle East.