Mideast Stocks: Most Gulf markets gain on oil, Fed rate cut hopes

Commercial International Bank Egypt CIB

23/12/2025 13:35

Updates to market close

By Ateeq Shariff

Dec 23 (Reuters) - Most Gulf stock markets reversed early losses to close higher on Tuesday, supported by stabilizing oil prices ahead of upcoming U.S. economic growth figures.

Oil prices - a catalyst for the Gulf's financial markets - were little changed as potential sales of Venezuelan crude seized by the United States were countered by heightened supply disruption fears after Ukrainian attacks on Russian vessels and piers.

Saudi Arabia's benchmark index .TASI gained 0.4%, helped by a 2.2% rise in the country's biggest lender Saudi National Bank  1180.SE and a 0.4% increase in Al Rajhi Bank 1120.SE.

Sentiment was bolstered by a recent rebound in oil prices as geopolitical risks resurfaced. However, the medium-term outlook of a projected supply surplus in 2026 continues to weigh on the sustainability of this rally, said Joseph Dahrieh, Managing Principal at Tickmill.

"Additionally, market sentiment improved as investors priced in further Fed rate cuts for 2026."

Dubai's main share index .DFMGI edged 0.1% higher, with top lender Emirates NBD ENBD.DU rising 0.5%.

The Abu Dhabi index .FTFADGI rose 0.2%.

Meanwhile, markets are now anticipating two rate cuts in 2026, with expectations for looser monetary policy strengthened by reports  that President Donald Trump may appoint a new Federal Reserve chair early next year.

Trump stated last week that the next Fed chair will be an individual strongly supportive of significantly lower interest rates.

Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.

The Qatari index .QSI added 0.2%, with Qatar National Bank  QNBK.QA, the Gulf's biggest lender by assets, finished 0.6% higher.

Outside the Gulf, Egypt's blue-chip index .EGX30 ended 0.8% higher, with top lender Commercial International Bank  COMI.CA putting on 2.1%.

The International Monetary Fund said on Tuesday it had reached a staff-level agreement with Egypt on the fifth and sixth reviews under its Extended Fund Facility arrangement, potentially unlocking a roughly $2.5 billion disbursement under the programme.

Saudi Arabia
.TASI rose 0.4% to 10,596
Abu Dhabi
.FTFADGI added 0.2% to 10,058
Dubai
.DFMGI was up 0.1% to 6,162
Qatar
.QSI gained 0.2% to 10,824
Egypt
.EGX30 advanced 0.8% to 41,419
Bahrain
.BAX rose 0.2% to 2,066
Oman
.MSX30 up 0.1% to 5,948
Kuwait
.BKP added 0.4% to 9,603

 (Reporting by Ateeq Shariff in Bengaluru; Editing by Harikrishnan Nair and Tasim Zahid)

 ((AteeqUr.Shariff@thomsonreuters.com; +918061822788))