Dubai leads Gulf gains as UAE, Saudi growth data lift sentiment

Gulf stock markets surged on Thursday, propelled by Dubai's main index, as robust economic indicators from the United Arab Emirates and Saudi Arabia offset worries over escalating tensions between the United States and Iran. Tensions escalated recently, marking the most intense clash between the two nations since July, and the conflict is now in its seventh month.

UAE non-oil private sector activity witnessed its most significant expansion since December 2024 in August, driven by robust output and new business growth, according to a survey. Dubai's benchmark index appreciated by 0.5%, with all sectors trading higher. Emaar Properties, a prominent developer, saw a 1.1% increase, while Emirates NBD, the largest lender in Dubai, surged by 0.5%.

Abu Dhabi's benchmark index also ticked up by 0.3%, buoyed by gains in real estate and basic materials stocks. Aldar Properties rose 0.9%, and Space 42 climbed 6.7%. In Saudi Arabia, the benchmark index advanced by 0.2%, supported by gains in financial, IT, and materials stocks. Saudi Arabian Mining surged by 1.7%, and Riyad Bank gained 1.1%.

Saudi Arabia's non-oil private sector expanded at its fastest pace in six months in August, fueled by stronger output and recovering market activity, as indicated by a business survey. National Shipping Company of Saudi Arabia, also known as Bahri, faced a 1.6% decline. Saudi Arabia reported that an Iranian attack on a Bahri-owned oil tanker resulted in the deaths of two Filipino seafarers.

Qatar's benchmark index climbed by 0.1%, driven by a 1.2% increase in Ooredoo, a telecommunication company. Gulf International Services, a Doha-based oilfield-services holding company, rose by 3.8%. Separately, three liquefied natural gas cargoes loaded in Qatar and the UAE were transferred between ships outside the Strait of Hormuz for delivery to India and Japan, according to ship-tracking firms.

Outside the Gulf, Egypt's blue-chip index rose by 1.1%, with practically all of its constituents posting gains. Commercial International Bank increased by 1.5%, and Talaat Moustafa Group climbed by 1.2%. Meanwhile, Egypt's economy expanded by 5.1% in the financial year 2025/26, compared to 4.4% in the previous year, as reported by a cabinet statement on Thursday.