Mideast Stocks: Earnings Drag Saudi, Abu Dhabi Down, While Lifting Dubai Amid Cautious Trade Outlook

Saudi Arabia and Abu Dhabi edged lower on Tuesday on lacklustre second-quarter results, while Dubai advanced, bucking major Gulf peers, supported by strong corporate performance and optimism around future positive earnings announcements.

Saudi Arabia's benchmark index <.TASI> eased 0.6%, pressured by a string of disappointing earnings across key sectors.

Arabian Drilling <2381.SE> plunged 10% after posting a sharp drop in second-quarter profit, well below analysts' expectations, and announcing a suspension of cash dividends for 2025.

Arabian Pipes <2200.SE> fell more than 3.5% after missing quarterly estimates, while Jamjoom Pharmaceuticals <4015.SE> dropped nearly 5% as its shares traded ex-dividend.

Dubai's benchmark index <.DFMGI> rose 0.2% to hit over a 17-1/2-year high, logging its fifth consecutive session of gains, as hopes remain high ahead of key earnings, mainly from the real estate sector. Gains were driven by a 1% jump in toll operator Salik <SALIK.DU> maintaining the same stretch of wins.

Elsewhere, Dubai Taxi Company <DTC.DU> climbed nearly 7.5% after its second-quarter results topped market expectations and it announced a higher half-year dividend than last year.

The Abu Dhabi index <.FTFADGI> edged down 0.2% as mixed corporate earnings offset optimism from the previous week's strong performance that was expected to sustain momentum.

Abu Dhabi's largest developer, Aldar Properties <ALDAR.AD>, slipped over 3% after announcing a marginal second-quarter revenue decline sequentially, despite reporting a record order backlog of 62.3 billion dirhams as of the end of June.

Among other laggards, IHC-owned investment firm Multiply Group <MULTIPLY.AD> sank 3.3% after its quarterly profit halved year-on-year.

Qatar's benchmark index <.QSI> fell 0.6%, weighed down by broad-based sectoral declines, as investors booked profits following a multi-year rally, with Qatar Islamic Bank <QISB.QA> losing nearly 2%.

Investors remained focused on global trade risks following the U.S. and European Union's weekend deal, which reduced the threat of a 30% tariff to a 15% levy on most EU imports.

While the agreement eased immediate fears, sentiment remained cautious as markets weighed the higher duties against the 1% to 2% level before Trump returned to the White House.

Trump's ongoing tariff policies continue to fuel worries over global growth, with potential slowdowns in trade and consumption threatening energy demand and the fiscal stability of oil-dependent Gulf economies.

Outside the Gulf, Egypt's blue-chip index <.EGX30> was flat following a recent record peak.

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