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GCC Equity Markets Show Varied Performances in Second Quarter 2025

Strategic Insights

— 2 min read

The second quarter of 2025 ended with the Gulf Cooperation Council (GCC) equity markets demonstrating varied performances, as reported in the latest Investment Manager Report from the National Bank Oman GCC Fund. While Saudi Arabia struggled due to decreasing oil prices and government expenditure cuts, the United Arab Emirates emerged as a regional leader, with Dubai achieving a 17-year high by the end of June. Kuwait and Qatar also experienced positive moves, driven by legislative advancements and strong banking sector results, respectively. Oman recovered from first-quarter lows due to increased confidence in local market fundamentals.

Key Takeaways:

  • The S&P GCC Price Index registered a minor decline, reflecting varied outcomes across the region's stock exchanges.
  • Saudi Arabia's Tadawul Index underperformed due to government capital expenditure cuts and foreign institutional investor outflows.
  • Dubai witnessed a significant move upward, achieving a 17-year high by the end of June, fueled by strong performances in the real estate and banking sectors.
  • Kuwait benefited from legislative advancements in mortgage and debt laws, which improved credit growth and market sentiment.
  • Qatar's recovery was driven by strong banking sector results and value buying across the market.
  • Oman saw a significant move upward, recovering from first-quarter lows due to increased confidence in local market fundamentals.
  • The energy sector faced challenges due to falling Brent crude prices, which started the quarter at $74.77 per barrel and dropped due to increased global supply and subdued demand.
  • Noteworthy stocks in the industrial sector included Al Babtain Electrical Industries and Al Anwar Ceramics.
  • Presight AI was a significant contributor to the UAE market's strong performance.
  • The National Bank Oman GCC Fund's portfolio outperformed its benchmark, demonstrating a moderate move upward and positioning itself favorably for continued regional market growth.

Statistics:

  • The S&P GCC Total Return Index rose moderately, mainly attributed to strong dividend distributions.
  • The S&P GCC Price Index declined, indicating limited capital gains during the quarter.
  • Brent crude prices fell from $74.77 per barrel at the start of the quarter to below $70.
  • The Communication services, industrials, and information technology sectors emerged as the top performers in the quarter.
  • Consumer staples and materials lagged behind in sector-specific performances.
  • 17-year high achieved by Dubai by the end of June 2025.
  • 74.77 – start of quarter Brent crude price per barrel.

Sources:

  • National Bank Oman GCC Fund's Investment Manager Report
  • Muscat Stock Exchange (MSX)
  • Gulf Cooperation Council (GCC)

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