Mideast Stocks: Major Gulf markets ease as investors await US-Iran developments

Telecom Egypt SAE

26/02/2026 13:10

Updates prices

By Amna Mariyam

BANGALORE, Feb 26 (Reuters) - Major Gulf stock markets fell on Thursday as investors maintained a risk-averse approach amid heightened geopolitical tensions and uncertainty surrounding a third round of U.S.-Iran nuclear talks set to take place in Geneva later in the day.

Saudi Arabia's benchmark stock index .TASI dropped 1.3%, marking its second consecutive week of decline. Losses were broad-based, led by energy stocks, with Saudi Aramco 2222.SE dropping 3% — its steepest one-day decline in nine months — after the company confirmed damage at its Juaymah terminal and subsequent delivery cancellations.

Al Rajhi Bank 1120.SE, the world's largest Islamic lender, fell 1.4%, and Saudi National Bank 1180.SE, the country's largest lender by assets, dropped 1.7%.

Reuters reported that Saudi Arabia is ramping up oil production and exports as part of contingency measures to mitigate potential disruptions from a U.S. strike on Iran.

The robust non-oil economic sector could aid a market rebound if geopolitical tensions subside, according to George Pavel, general manager at Naga.com Middle East.

Dubai's main stock index .DFMGI retreated 0.8%, weighed down by banking and real estate stocks. Emirates NBD Bank ENBD.DU plunged over 4%, marking its worst daily performance in more than three months, while Emaar Properties EMAR.DU, a leading real estate developer, fell 1.2%.

On Wednesday, the UAE's Central Bank unveiled plans to establish a sovereign financial cloud infrastructure in collaboration with G42 subsidiary Core42.

Abu Dhabi's index .FTFADGI edged 0.4% lower, extending a cautious trading pattern after two flat sessions. The market remained near historical highs as investors awaited clearer regional developments. Alpha Dhabi Holding ALPHADHABI.AD and Aldar Properties ALDAR.AD both dropped 0.4%.

However, strong fourth-quarter corporate earnings in Abu Dhabi and a positive economic outlook could provide upward momentum once geopolitical risks subside, though oil price fluctuations remain a key concern, said Pavel.

Bloomberg News reported that Shell SHEL.L is in talks with ADNOC and others regarding the sale of its stake in an Australian LNG project.

Qatar's stock index .QSI tumbled 1.9%, marking its steepest single-day decline since mid-June, with all sectors closing in negative territory. Shares of Qatar National Bank QNBK.QA, the region's largest lender, dropped 3%, representing its biggest single-day loss in over five months. Qatar Aluminum Manufacturing Co QAMC.QA sank 3.5%, its largest one-day drop in nearly 11 months.

Outside the Gulf, Egypt's blue-chip index .EGX30 gained 0.4%, seeking to recover from Wednesday's losses, as sentiment was bolstered by the IMF's completion of two reviews of Egypt's economic reform programme and a Resilience and Sustainability Facility (RSF) review, paving the way for disbursements of about $2.3 billion.

Commercial International Bank COMI.CA, the country's leading private lender, advanced 1.1%, while Telecom Egypt ETEL.CA surged 3.4% after reporting a fourfold rise in its fourth-quarter profits.

The Kuwait Bourse .BKP was closed on account of National Day and Liberation Day.

Saudi Arabia
.TASI dropped 1.3% to 10,709
Abu Dhabi
.FTFADGI eased 0.4% to 10,595
Dubai
.DFMGI shed 0.8% to 6,625
Qatar
.QSI dipped 1.9% to 11,055
Egypt
.EGX30 added 0.4% to 49,213
Bahrain
.BAX rose 0.1% to 2,061
Oman
.MSX30 advanced 0.1% to 7,393

 (Reporting by Amna Mariyam; Editing by Shailesh Kuber)

 ((amna.mariyam@thomsonreuters.com; 8448625620))