Gulf Markets Climb, Dubai and Abu Dhabi Lead

Gulf stock markets mostly rose this week, driven by strong corporate earnings in the banking sector, though Saudi Arabia's index continued to lag. Dubai and Abu Dhabi indexes reached multi-year highs, supported by strong profits from major lenders like Emirates NBD and Abu Dhabi Commercial Bank, while Air Arabia climbed on expansion plans. Qatar’s index also advanced, buoyed by Qatar Islamic Bank’s results, despite some banks reporting profit declines. Oil prices increased as tight inventories and renewed geopolitical risks, including drone attacks on Kurdistan oilfields, offset easing global trade tensions. Analysts warned that ongoing trade uncertainties and their potential impact on global growth could threaten market gains. Gulf investors continue to monitor U.S. inflation data and Federal Reserve policy closely due to the region’s currency pegs to the dollar.