Saudi index back above 10,300 points, leads Gulf bourses higher
The main Saudi stock index closed above 10,300 points after falling in the previous session to about 10,284 points, leading most Gulf bourses toward gains despite regional tensions.
The main Saudi stock index rebounded at Tuesday's close and finished above 10,300 points, after having fallen in the previous session to around 10,284 points, prompting most Gulf stock markets to move into gains.
The rise came amid investor caution as they weigh signs of economic resilience against the repercussions associated with the prolonged closure of the Strait of Hormuz and recent attacks that targeted vital facilities inside the kingdom.
In economic forecasts, the International Monetary Fund lowered its estimates for Gulf economies' growth this year, attributing the revision to the impact of the prolonged closure of the Strait of Hormuz. It expected Saudi Arabia's GDP to contract by 3.3 percent in 2026, before returning to strong growth of 7.9 percent in 2027 as shipping activity and energy flows normalize.
The fund attributed the Saudi economy's ability to recover to the availability of alternative export routes, including pipelines that direct shipments toward Red Sea ports. It also expected inflation to remain moderate at 1.9 percent this year and 2.2 percent next year.
Market observers believe that Gulf bourses' performance in the coming period will remain contingent on developments in the region's security situation, movements in oil prices, and companies' third-quarter results, which are due to start being announced in the coming weeks.
