Mideast Stocks: Most Gulf markets in red on weak oil prices

Commercial International Bank Egypt CIB

04/01/2026 13:47

By Ateeq Shariff

Jan 4 (Reuters) - Most stock markets in the Gulf closed lower on Sunday, in response to Friday's fall in oil prices as investors weighed oversupply concerns against geopolitical risks.

The Brent benchmark lost nearly 20% in 2025, the steepest fall since 2020. It was the third straight year of losses for Brent, the longest streak on record.

Saudi Arabia's benchmark index .TASI fell 1.8%, with Al Rajhi Bank 1120.SE losing 1.7% and Saudi National Bank 1180.SE - the country's biggest lender by assets - dropping 2.3%.

Elsewhere, oil behemoth Saudi Aramco 2222.SE was down 1.6%.

OPEC+
kept oil output unchanged
 on Sunday after avoiding discussions of the multiple political crises affecting the producer group's members, from the Middle East as well as Russia, Iran and
Venezuela
.

Saudi Arabia's finance minister has approved the kingdom's 2026 borrowing plan, with financing needs of about 217 billion riyals ($57.86 billion), the finance ministry said on Saturday, as the Gulf country pushes ahead with its economic diversification plans.

The world's top oil exporter is more than halfway through its Vision 2030 plan that calls for hundreds of billions of dollars in government investment to cut its economic dependence on hydrocarbon revenue.

In Qatar, the index .QSI added 0.2%, with the Gulf's biggest lender Qatar National Bank QNBK.QA gaining 0.7%.

The Qatari market has shown resilience, bolstered by an economy less reliant on oil and heavily anchored in liquefied natural gas (LNG). This diversification acts as a built-in buffer against short-term oil price swings, said Rania Gule, senior market analyst at XS.com – MENA.

"Accordingly, I expect the Qatari market to maintain relatively stable performance, with gradual upside potential should global energy prices improve, without being exposed to sharp or sudden fluctuations."

Outside the Gulf, Egypt's blue-chip index .EGX30 declined 2.2%, with Commercial International Bank COMI.CA retreating 2.4%.

Saudi Arabia
.TASI dropped 1.8% to 10,364
Qatar
.QSI added 0.2% to 10,763
Egypt
.EGX30 declined 2.2% to 40,898
Bahrain
.BAX was flat at 2,067
Oman
.MSX30 gained 0.7% to 5,939
Kuwait
.BKP lost 0.7% to 9,431

($1 = 3.7502 riyals)

 (Reporting by Ateeq Shariff in Bengaluru;Editing by Elaine Hardcastle)

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